Hi. Is child support calculated from gross income or taxible income? Cheers
Child support is an expense after tax and is treated like other expenses in that it comes off your nett income.
Where the child does not reside with you it is acceptable to use an outgoing child support payment in
place of including the child as a dependant .(However if you are paying lenders mortgage insurance it may require you also add as a dependant adding additional expense to your monthly living expenses calculation - check with your bank how they treat this scenario). Generally a copy of the court order or child support agency letter dated within 12 months of the application confirming the amount of the outgoing commitment is to be provided and with some banks also bank statements confirming the commitment has been met.
Hope this helps
your child support payments are based on an "adjusted taxable income" which means that they take your TAXABLE income and add to it things like fringe benefits, additional superannuation (eg salary sacrifice) and also I believe they add back rental property losses too.
hope that helps
Patrick Earl Armstrong Doessel Stevenson Lawyers (LPH)
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According to the Child Support Agency website:
We calculate each parent’s child support income. This is a parent’s adjusted taxable income minus a self-support amount and any relevant dependant allowance. For more information about relevant dependant allowances, go to child support assessments and second families. https://www.humanservices.gov.au/individuals/services/child-support/child-support-assessment/how-we-work-out-your-assessment/assessments-parents-second-families
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