2.4.10 Formulas 5 & 6 - assessments using the income of only one parent
Context
Where a non-parent carer applies for a child support assessment, only one parent's income will be used to calculate child support where:
- one parent is a resident of a non-reciprocating jurisdiction (1.5.1)
- one parent is not being assessed because of special circumstances, or
- one parent is deceased.
In these 3 circumstances, the annual rate of child support payable is calculated by using:
- Formula 5, if a parent is a resident of a non-reciprocating jurisdiction or there are special circumstances, or
- Formula 6, if one parent is deceased.
This is different from the basic formula (2.4.7) (as well as Formulas 3 and 4 (2.4.9)) which uses the income of both parents to identify the costs of the children and to determine the annual rate of child support payable.
Act reference
CSA Act section 39, section 40, section 41, section 49, section 55C
On this page
- Formula 5 – one parent is a resident of a non-reciprocating jurisdiction
- Formula 5 – special circumstances exist
- Formula 5 – steps involved in making a child support assessment
- Formula 6 – one parent is deceased
- Formula 6 – steps involved in making a child support assessment
Formula 5 - one parent is a resident of a non-reciprocating jurisdiction
Formula 5 is used when a non-parent carer has applied for child support to be assessed and one of the parents is neither a resident of Australia (1.6.1) nor a resident of a reciprocating jurisdiction (1.5.1). Where the residence status of the parents has been considered and the application has been accepted (2.1.5) a non-resident parent cannot be assessed for child support, and therefore the income of that parent is not part of the calculation of the assessment.
Formula 5 - special circumstances exist
Formula 5 may be used when a non-parent carer has applied for child support to be assessed on the basis that special circumstances (2.1.1) exist that make it inappropriate for a parent to be assessed for child support. In making a decision on the application, the Registrar will consider the facts to determine if special circumstances do exist. If the Registrar does accept the application, then Formula 5 is used to calculate the liability of the other parent.
Formula 5 will also be used to calculate assessments with a non-parent carer and only one parent, where the application from the non-parent carer was accepted before 1 July 2008, unless the non-parent carer chooses to apply against both parents.
Formula 5 – steps involved in making a child support assessment
Formula 5 uses the income of only one parent, but recognises that the child does have 2 parents by doubling the income of the parent in the assessment at Step 1 to calculate the costs of the child. The costs are then halved at Step 5 to identify the amount to be paid by the assessed parent.
The use of only one parent's income means that not all of the steps of the basic formula are required, and that some different calculations are made.
| Step | Action | More detail |
|---|---|---|
| 1 | Work out the parent's child support income (CSA Act section 41) and double that income. | 2.4.4 |
| 2 | Work out the parent's percentage of care for the child (CSA Act section 49). | 1.1.C.20 |
| 3 | Work out the parent's cost percentage for the child (CSA Act section 55C). | 1.1.C.200 |
| 4 | Work out the costs of the child using the income from Step 1, by using either:
| 2.4.6 |
| 5 | Work out the following rate:
| - |
| 6 | If the parent is not assessed to pay child support for a child in another case, the annual rate of child support payable is the rate worked out under Step 5. | - |
| 7 (if applicable) | If the parent is assessed to pay child support for a child who is in another child support case, work out the parent's multi-case cap. | 2.4.9 |
| 8 | The annual rate of child support payable for the child is the lower of the annual rate calculated at Step 5, or the multi-case cap calculated at Step 7. | - |
| 9 | If there is only one non-parent carer, the parent must pay the annual rate of child support that is payable for the child to the non-parent carer. | - |
If there are 2 non-parent carers who each have a percentage of care for the child, and they have both applied for child support, the parent must pay the annual rate of child support payable for the child to the non-parent carers as follows:
- Total amount which non-parent carers are entitled to be paid × (Non-parent carer's cost percentage for the child ÷ Total of non-parent carers' cost percentages for the child).
Formula 6 – one parent is deceased
Formula 6 is used when a non-parent carer has applied for child support to be assessed and informs the Registrar, or the Registrar otherwise becomes aware, that one of the child's parents is deceased. Formula 6 recognises that the child has only one parent. That parent's income is used to calculate the costs of the child.
Formula 6 – steps involved in making a child support assessment
The use of only one parent's income means that not all of the steps of the basic formula are required, and that some different calculations are made.
| Step | Action | More detail |
|---|---|---|
| 1 | Work out the parent's child support income (CSA Act section 41). | 2.4.4 |
| 2 | Work out the parent's percentage of care for the child (CSA Act section 49). | 1.1.C.20 |
| 3 | Work out the parent's cost percentage for the child (CSA Act section 55C). | 1.1.C.200 |
| 4 | Work out the costs of the child using the income from Step 1, by using either:
| 2.4.6 |
| 5 | Work out the following rate:
| - |
| 6 | If the parent is not assessed to pay child support for a child in another case, the annual rate of child support payable is the rate worked out under Step 5. | - |
| 7 (if applicable) | If the parent is assessed to pay child support for a child who is in another child support case, work out the parent's multi-case cap. | 2.4.9 |
| 8 | The annual rate of child support payable for the child is the lower of the annual rate calculated at Step 5, or the multi-case cap calculated at Step 7. | - |
| 9 | If there is only one non-parent carer, the parent must pay the annual rate of child support that is payable for the child to the non-parent carer. | - |
If there are 2 non-parent carers who each have a percentage of care for the child, and they have both applied for child support, the parent must pay the annual rate of child support payable to the child to the non-parent carers as follows:
- Total amount which non-parent carers are entitled to be paid × (non-parent carer's cost percentage for the child ÷ total of non-parent carers' cost percentages for the child).