How your income affects your child support
We consider each parent’s income equally when we make a child support assessment. We don’t use income from non parent carers.
Once we work out each parent’s income, we’ll know their share of the children’s costs. Your percentage of care can also affect these costs. Read about the assessment formula we use.
What income information we use
We can usually use information about your income from the Australian Taxation Office (ATO).
If you live overseas, financial year means the financial year of the country you live in. Read about child support when parents and children live overseas.
To make sure we base your child support on the right income, you should always lodge your tax return on time.
What income we use if you haven’t lodged your tax return
You can tell us your adjusted taxable income for the last relevant year. If you don’t, we’ll work out a provisional income for you. This will be what we think your adjusted taxable income is likely to have been.
We may ask you for a copy of some recent pay slips to help us.
If we don’t have enough information or you don’t lodge a tax return we’ll use either:
- your tax return for the year before and adjust it for inflation
- two thirds of the male total average weekly earnings as your income.
We’ll use the higher of these amounts.
We may make a new assessment when you or the other parent lodges a tax return for the year.
If you live overseas, we won’t know when you lodge a tax return in the country where you live. If you have a child support assessment from us, you need to tell us your last financial year’s income. You must do this at the start of each child support period. You may need to give us proof of your income.
You need to lodge your tax return for that year as soon as possible. Read about child support when parents and children live overseas.
If you have all your income information, but aren’t ready to lodge a tax return, tell us your income by:
- using the Express Plus Child Support mobile app
- using your Child Support online account through myGov
- calling us on the Child support enquiry line.
Or, you can complete the income declaration form and submit it:
If you have income from Norfolk Island
If you earned income on Norfolk Island in 2015-16, you should tell us. To do this, complete the Income declaration - Norfolk Island income for the 2015-16 financial year form.
You must tell us about any changes to your income when they happen. We may be able to change your child support assessment. We can’t backdate some income changes, so tell us as soon as possible.
Your current income may be lower than the income we are using in your child support assessment. If this applies to you, you may be able to tell us an estimate of your current income.
We can only accept an estimate in certain circumstances. Your current adjusted taxable income must be at least 15% lower than what we’re using in your child support assessment.
One of the following must also apply:
- the ATO has assessed your income for the financial year we are using for your assessment
- the ATO hasn't assessed your income for the financial year used in your assessment, but you've declared your income.
Only you can make an estimate. If you choose to make an estimate, it’s important you do it as soon as you can. We can only use your estimate from the day you tell us.
You may not be able to make an estimate if your child support involves:
- a limited child support agreement
- a binding child support agreement
- a decision through the change of assessment process
- a court order
- an assessment from another country.
When you need to update your estimate
Your income changes
If your income goes up or down you must make a new estimate of income. If your income goes down, we can’t backdate your estimate. Do this as soon as possible.
Your estimate ends before your child support period
Your income estimate lasts until the end of the financial year. Your child support period may continue into the new financial year.
If this happens you should give us a new income estimate. Do this before the end of the current financial year.
If you don’t submit a new estimate we’ll base your assessment on the income from the last financial year.
You can make an estimate:
- using your Express Plus Child Support mobile app
- using your Child Support online account through myGov and selecting Income then Update your current income
- by calling the Child support enquiry line.
Or you can complete the Estimate of income for use in Child Support Assessment form and submit it:
Make your estimate as accurate as you can.
What happens if you don't update your estimate
After the financial year ends we compare your estimate to your actual income for the year.
If the estimate is lower you may have to:
- pay off a debt
- pay back an overpayment.
When you haven’t lodged a tax return on time, we’ll work out your provisional income. If your actual income was lower than your provisional income, we can’t usually go back and change your child support.
Change of assessment
If you have special circumstances, you may be able to apply for a change of assessment.
Special circumstances can include:
- either parent’s financial resources, income and property aren’t being reflected in the assessment
- either parent’s earning capacity is greater than what’s reflected in the assessment.
This can include income and financial resources that are not part of the adjusted taxable income in the child support formula.
If you earn extra income after you separate, you may be able to exclude it from your child support assessment. For example, you might be able to exclude some of the income you earn if you start a second job.
To exclude extra income, you need to show you earned it in a pattern that started after separating. This could be from:
- getting a new job on a higher salary
- opening your business for longer hours
- getting a second job.
You also need to show you wouldn’t have earned it in the normal course of events. For example, it can’t be from:
- a regular pay increase
- your usual pattern of overtime
- ordinary seasonal changes in income.
You can only exclude income if all of the following apply:
- you lived together with, and were in a relationship with, the other parent for at least 6 months
- you apply to exclude the extra income less than 3 years after separating
- you’re still separated at the time you apply.
You may be able to exclude up to 30% of your adjusted taxable income.
Both parents can apply to do this.
To apply to exclude income, complete the Application for Post Separation Income to be Excluded form.
You can then upload it using your:
You can also send it by post or fax.
If you’re a non-parent carer, you won't need to tell us about income changes.
Call the Child support enquiry line if you have any questions.
We use your adjusted taxable income to work out your eligibility for some payments or services.
Page last updated: 13 August 2021
This information was printed 13 September 2021 from https://www.servicesaustralia.gov.au/individuals/services/child-support/child-support-assessment/how-we-work-out-your-assessment/how-your-income-affects-your-child-support. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.