Child Support – What’s your income?

The definition of “income” for the purposes of calculating of child support will change from 1 July 2009.

The effect of the changes is that before the parent’s ‘child support income‘ is calculated, a parent’s ‘adjustable taxable income’ will also include:-

• Reportable superannuation contributions – including salary sacrificed superannuation or contributions made by the parent personally or their employer (above the minimum contributions an employer must make on an employee’s behalf); and
• Total net investment losses – for example from rental property or financial investment income.

All reportable employer superannuation contributions made to the Australian Taxation Office will be reported by the employer in the parents’ payment summary for 2009 – 2010. However parents going through a Change of Assessment process after 1 July 2009 will need to include any reportable superannuation contributions, or risk of having outstanding child support later.

The new adjusted taxable income won’t affect most parents’ child support assessments until after 1 July 2010.

Ashleigh John is a member of Mullane & Lindsay’s Newcastle Family and Relationship Law team.

For an initial consultation regarding any issues arising from relationship breakdown, be it financial support, property, or relating to parenting arrangements including child support, please telephone Ashleigh or any of the Mullane Lindsay, Mark Sullivan, Vivien Carty or Kristy Davis.  Kristy Davis is present at our Tea Gardens office on Wednesday afternoons by appointment.  (Tel: 4928 7300).