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2.4.4.25 Relevant dependent child amount

Context

The relevant dependent child amount is a component of child support income (1.1.C.120) (2.4.4.10), and recognises the financial responsibility of a parent (1.1.P.10) to care (1.1.C.10) for a relevant dependent child (1.1.R.60).

A parent's relevant dependent child amount is the total of the amounts worked out for each relevant dependent child of the parent using the following steps.

Example: In 2023, Sung-soo has ATI (1.1.A.20) of $66,000 and 2 relevant dependent children. Abigail is aged 3 and Suellen is aged 6. She has 100% care of both children.

StepMethodologyExample (2023 figures)
1 – Calculate income (2.4)Deduct the self-support amount from the parent's ATI$38,492 ($66,000 less $27,508)
2 – Percentage of care (1.1.P.70)Work out the parent's percentage of care for the child.Abigail - 100%
Suellen - 100%
3 – Cost percentage (1.1.C.200)Work out the parent's cost percentage for the child.Abigail - 100%
Suellen - 100%
4 – COTC (2.4.6) (1.1.C.210)Work out the COTC using the 'basic formula (1.1.B.10) method', using the parent's initial child support income (1.1.C.120) only.COTC = 38,492 × 24% = $9,238
Cost of Abigail = $9,238 ÷ 2 = $4,619
Cost of Suellen = $4,619
As Sung-soo has a cost percentage of 100% for Abigail, the relevant dependent child amount is $4,619 (100% × $4,619).
As Sung-soo has a cost percentage of 100% for Suellen, the relevant dependent child amount is $4,619 (100% × $4,619).
5 – Calculate the relevant dependent child amount-Sung-soo's relevant dependent child amount is $9,238 (the sum of each of the child amounts at Step 4).

Note: A parent who lives full-time with a relevant dependent child has 100% care of that child, even if they also live with a new partner (1.1.P.20).
The new partner's income is not included in the calculation of the relevant dependent child amount.

Act reference: CSA Act section 46 Working out parent’s relevant dependent child amount, section 55F Simplified outline, section 55G Working out the costs of the children, section 55H Working out the costs of the child

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