The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.C.130 Child support inflation factor

Definition

Prior to 1 July 2011, the CSA Act provided for an inflation factor, known as the child support inflation factor, to determine incomes to be used in assessments where a parent (1.1.P.10) did not lodge a tax return for the relevant year of income but lodged a tax return for the previous year of income.

Some child support agreements or court orders still specify that the child support inflation factor be used as the indexation value for that agreement or order. These orders and agreements continue to use the inflation factor as per the previous methodology in the CSA Act. Due to a change to the ABS' publication frequency of AWE, from 2013 the child support inflation factor generally refers to the trend AWE figure of the relevant June quarter for child support agreement and court order purposes.

Due to the impact of the COVID-19 pandemic on the labour market, the ABS temporarily suspended publication of the AWE trend series from May 2020. As a result, the 2021 and 2022 child support inflation factors were calculated with reference to the 12-month period to the December quarter 2019. The 2023 child support inflation factor was calculated with reference to the 12-month period to the June quarter 2022.

Act reference: CSA Act pre-1 July 2011 section 58(3A) Determination if tax return lodged 2 years ago

Child Support (Assessment) Regulations 1989 regulation 7A Factor for making a determination

Policy reference: CS Guide 2.4.2 Formula tables & values, 1.1.B.30 Binding child support agreement, 1.1.L.40 Limited child support agreement

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