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.P.130 Provisional income

Definition

Provisional incomes may be used in a child support assessment (1.1.C.70) to ensure a parent’s (1.1.P.10) financial capacity is reflected as accurately as possible when a parent has not yet lodged a tax return for a relevant financial year.

Provisional incomes:

  • ensure child support assessments are accurate despite a parent not lodging a tax return
  • encourage timely lodgement of tax returns
  • recognise that due dates for tax lodgement due dates can be delayed if the parent lodges their tax return through a tax agent
  • minimise the risk of either parent being assessed with a debt or overpayment (1.1.O.20) when a child support assessment is retrospectively updated when the parent lodges their tax return.

A provisional income may be updated retrospectively if new information is received about a parent’s taxable income depending on the period the income will apply to.

For more information on how a provisional income is used in a child support assessment see 2.4.4.40.

Act reference: CSA Act section 5(1)-'child support year'

CSRC Act section 4(1)-'child support assessment'

Policy reference: CS Guide 2.4.4.40 Provisional income – determination of ATI, 1.1.C.90 Child support debt

Last reviewed: