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.I.10 Income amount order

Definition

An income amount order means:

  • a departure order made by a court or COA (2.6), (1.1.C.50) that either
  • provisions of a child support agreement (2.7) that have effect as if they were an income amount order made by consent. That is, the provisions of the agreement set the annual rate of child support payable, the ATI, or the child support income of a parent.

An income amount order can relate to only one parent or to both parents and if it is only in relation to one parent it will not prevent the other parent from making an income estimate (2.5.1), (1.1.I.20) election.

An income amount order is not:

  • an agreement that provides for the payment of child support other than in the form of a periodic amount (1.1.P.80)
  • an order, agreement or COA decision that varies a parent's child support percentage (1.1.C.140), self-support amount (1.1.S.20), relevant dependent allowance (1.1.R.60) multi-case allowance (1.1.M.30), cost percentage (1.1.C.200), or the COTC (1.1.C.210).

If a child support agreement is suspended because the payee (1.1.P.30) is no longer an eligible carer (1.1.E.10) of the child (CSA Act section 86), an income amount order is no longer considered to be in force during the period of suspension. A parent is not prevented from making an income estimate in relation to a formula assessment (1.1.F.20) that may take effect during the suspension period (CSA Act section 60(6)).

Example: Sebastian and Ina's child support assessment (1.1.C.70) is based on a court ordered departure order which sets Sebastian's ATI amount at $56,000. This is an income amount order for Sebastian only. Ina can still make an income estimate election.

Example: Jack and Rochelle's child support assessment is based on a COA decision which increases the annual rate payable by Jack by $5,000. As the COA decision does not set the annual rate payable, it is not an income amount order.

Example: Michelle and Owen enter into a child support agreement for their child, Amanda. The agreement states that Michelle will pay Amanda's school fees and the costs of all school excursions and uniforms. It states that an annual amount of $8,000 is to be credited against Michelle's child support liability.

Michelle applies to the Registrar for acceptance of the agreement. The Registrar accepts the agreement and starts a new CSP (1.1.C.150) reducing the annual amount that Michelle pays Owen by $8,000. The child support assessment is based on Michelle's ATI for the last relevant year, namely $72,000. Three months later, Michelle's income has reduced. Michelle contacts Services Australia and advises that her current annual ATI is $50,000. Michelle is able to make an income estimate election. The child support agreement is an agreement for the payment of child support by non-periodic payments to the other parent. The provisions of the agreement are not an income amount order.

Example: Ethan and Janine's child support assessment is based on a COA decision. Ethan's relevant dependent child allowance was increased to take into account the special needs of Ethan's relevant dependent child. The COA decision is not an income amount order.

Act reference: CSA Act section 5(1)-‘income amount order’, Part 6 —Consent arrangements, Part 6A—Departure from administrative assessment …, Part 7 Division 4 —Orders for departure from administrative …

Policy reference: CS Guide 10.4.2 Application & orders about decision under the CSA Act, 2.6 Change of assessment in special circumstances, 2.7 Agreements, 1.1.L.10 Last relevant year of income, 1.1.N.10 Non-periodic payment provisions

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