We reduce your FTB by 50 cents for every dollar of child support you receive over the threshold. We call this threshold the Maintenance Income Free Area. We apply these automatically. Your child support won't reduce your FTB below the base rate of FTB Part A.
You might think child support is taxable income because payments such as JobSeeker, Parenting Payment and Austudy are taxable; they count as income. A full list of taxable Centrelink payments is shown here. Child support is different from these taxable government payments since the money comes from another person.
The fixed rate for child support periods starting on or after 1 January 2023 is $1,632 per child per year. If you pay the fixed rate for more than 3 children, we'll cap the amount at 3 times the fixed rate. If you pay the fixed rate to more than one person, we divide the amount between those receiving parents.
Do I pay child support if my child is working full time? If your child is working full time, you can apply for a change of assessment. This will allow the Registrar to consider whether the child support you have been assessed to pay should be amended as it is unfair or inequitable.
Do you pay less child support if you have another child? Yes. Your assessment is based on the number of dependent children that you have. If you have a child with a new partner, then that new child is considered a dependent.
In Australia shared custody means that the non-residential parent pays child support to the residential parent. In the case of a 50/50 split, the higher earner usually pays child support to the lower earner to ensure the children's standard of living is the same in both locations.
Normally child support stops when your child turns 18. If your child's in secondary study, you can apply to extend it to the end of the school year.
This means that child support payments are based on both parents' income and how much more the higher-earning parent makes, but there is no law that caps child support at any specific dollar amount.
The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work. Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances.
Where you have a private arrangement in place, salary packaging will not generally have any impact on your child support payments. Salary packaging may impact the amount of benefit you receive from Centrelink, and other financial payments such as Child Support.
The Child Support Agency can use a Section 72A notice to gain access to superannuation in some limited circumstances.
Child support you pay
If you pay child support, deduct it from your adjusted taxable income for any of these: family assistance payments. low income supplements.
Income includes: an amount you earn, derive or receive for your own use or benefit. profits. some regular payments you get as a gift or allowance.
Under Australian law, separated parents (including same sex parents) have a duty to provide a proper level of financial support for their children. The scheme provides a flexible way of ensuring that children are supported by their parents, often with the assistance of government benefits.
If you have a Child Support Case
If you have a child support debt we may issue a Departure Prohibition Order. It'll stop you from leaving Australia until you either: pay your debt in full. enter into an acceptable payment arrangement.
In Australia, parents are not imprisoned for failing to pay child support.
Child support is payable for all children living in Australia whose parents have separated, whether or not the parents were married to each other. If a child turns 18 during their last year at school then that child is eligible for child support until they complete the school year.
In Australia, parents have a legal responsibility to financially support their children, whether they are biological, adoptive or same sex parents. Parents can make an agreement about child support or they can apply to the Services Australia (Child Support) for an administrative assessment.
Unfortunately, a loss of income does not automatically stop your child support obligations. If you are paying pursuant to a child support assessment you must notify Department of Human Services and advise of the change to your income without delay.
You cannot opt out of or vary your obligation to pay child support unless it is by agreement with the other parent. In the event both parents agree to opt out of or vary, any assessed child support payments the parents should usually enter into a child support agreement.
Whilst Australia does not require a child to spend equal time with each parent, many families do choose a 50/50 schedule, such as one of the following. 2-2-3 schedule: This has the child spend two days with one parent, the following two days with the other parent, then three days with the start parent.
A great deal depends on the facts of the situation, but in general, during their parenting time, your ex has the right to decide who will see your child — just as you do during your own parenting time.