The new Child Support Scheme and changes to Family Assistance
Example of the basic formula: Phil and Amanda
Amanda earns income in her full-time job. For 2006-07, the taxable income shown on her payment
summary was $42,000. Phil receives income support from Centrelink. In 2006-07, his income
was $15,550.
They have two children—Fran is 14 and Jack is 11. They don't have any other relevant children. The
children stay with Amanda during school holidays and some weekends, which equates to about 80
nights a year (between 14-34 per cent care). Phil has the children the rest of the time.
| Stage 1: Each parent's child support incomes |
Amanda |
Phil |
| Work out each parent's adjusted taxable income |
$ 42,000 |
$ 15,660 |
| Deduct the self-support amount from each parent's adjusted taxable income |
- $18,252* |
- $18,252* |
| Deduct a relevant dependent amount |
- $ 0 |
- $ 0 |
| Deduct a multi-case allowance amount |
- $ 0 |
- $ 0 |
| Each parent's child support income |
= $ 23,748 |
= $ 0 |
| Stage 2: Parents' combined child support income |
Amanda |
Phil |
| Add each parent's child support income together |
$ 23,748 |
$ 0 |
| Combined child support income |
= $ 23,748 |
| Stage 3: Each parent's income percentage |
Amanda |
Phil |
| Each parent's child support income |
$ 23,748 |
$ 0 |
| Divide each parent's child support income by the combined child support income |
1 |
0 |
| Multiply this amount by 100 |
x 100 |
x 0 |
| Each parent's income percentage |
= 100 % |
= 0 % |
| Stage 4: Each parent's care percentage |
Amanda |
Phil |
| Each parent's care percentage |
21 % |
79 % |
| Stage 5: Each parent's cost percentage |
Amanda |
Phil |
| Each parent's cost percentage |
24 % |
76 % |
| Stage 6: Each parent's child support percentage |
Amanda |
Phil |
| Each parent's income percentage |
100 % |
0 % |
| Deduct each parent's cost percentage |
24 % |
76 % |
| Each parent's child support percentage |
+ 76 % |
- 76 % |
| Stage 7: The costs of the children |
Fran and Jack |
| Total cost of all the child support children (using Table 3C) |
= $ 6,293 |
| Cost of each child (divide the total cost by the number of children) |
= $ 3,147 |
| Stage 8: How much child support Amanda pays to Phil |
Amanda |
| The parent's child support percentage |
+ 76 % |
| Multiply this percentage by 100 |
x 100 |
| Multiply this amount by the cost of each child |
$ 3,147 |
| Child support payable for each child per year |
= $ 2,392 |
