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.

2.4.4.10 Child support income

Introduction

This topic explains how child support income (1.1.C.120) is calculated and when it is used in the child support formula (1.1.C.110).

Act references

CSA Act Part 5 Division 2, Part 5 Division 3, Part 6A, Part 7 Division 4

Description

Child support income is calculated in Step 1 of the child support formula to determine a parent’s (1.1.P.10) financial capacity to support all their biological or adopted children. A parent's child support income is their:

The way child support income is calculated for the relevant dependent child amount and the multi-case allowance within Step 1 is explained below.

Child support incomeComponents of child support income
Calculating the relevant dependent child amount

A parent's child support income is their:

  • ATI, less
  • the self-support amount.
Calculating multi-case costs for the multi-case allowance

A parent's child support income is their:

  • ATI, less
  • the self-support amount, less
  • any relevant dependent child amount.

Child support income determined in some other way

Other provisions of the Act may also be used to determine a parent's child support income. The income to be used for a parent may be set by a change of assessment (1.1.C.50) decision (5.5.2) under Part 6A of the Act. There may be a child support agreement (Part 6) that specifies the income to be used. A court order made under Division 4 of Part 7 of the Act (a departure order (10.4.2)) may set the income amount to be used. A determination made under section 44 (post separation costs (2.5.2)) of the Act will identify the figure to be used as a parent's ATI in the calculation of the child support income.

When is child support income used in the child support formula?

A parent’s child support income is used in Step 2 of the child support formula to calculate combined child support income (1.1.C.190), and in Step 3 to calculate each parent’s income percentage (1.1.I.30).

Combined child support income is used in Step 7 of the child support formula to calculate the COTC for an assessment.

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