child support agency, page-46

Hi Jardan

From memory, the payee (your ex), assuming she is the primary carer of the children, has lodged a change of assessment application whereby she believes the current child support assessment does not properly reflect your current income. As you know, the current assessment is using your most recent taxable income as a base figure to calculate the daily rate of child support payable, so in effect, the payee believes she has evidence to support her claim that the child support formula does not accurately reflect your capacity to pay child support. i.e she is seeking administrative review of your current income.

Given her application has been accepted by the Agency, you do have a right of reply where, from memory, you are able to read her application (without her private details included) and state why you believe this is not the case and supply any evidence to deny her claim. The Agency will advise you how to do this. A date will then be set where you either together or separately appear in front of a Review Officer to state your claims.

Given you are self employed, the payee may believe that your taxable income does reflect your true income due to potential cash settlements, other assets which may produce an income, tax minimisation accounting procedures etc. i.e a parent who directs his or her own company may choose to draw little from the company in terms of income, but have access to significant resources and benefits that raise his or her standard of living. These entities could include trusts and companies. Therefore in your case, it is paramount to be able to portray and explain how your business has declined in profitability. Evidence could include balance sheets, current contractual obligations, statements from your Accountant etc. Be aware that the Agency via the ATO is able to view in detail how your taxable income has been calculated since day dot so you have to pretty straight. It all comes down to evidence.

Regarding your ex's investment property and whether any income derived from that investment should be calculated into the child support formula thereby increasing her own income, you can cross apply under the same reasons, stating that her income is not properly reflected in the assessment with any evidence supplied attached to your application. Beware though that assuming she is the primary carer of the children, the amount she can earn is much higher that yourself but it may worth a shot.

Remember this is not advice. If you provide more details I can help somewhat but given so many variables are unknown to me, it is hard to supply any more info but you need to be aware that administrative review decisions are evidence based so it is vital to be well prepared.

One option may be for you both is to lodge an "agreement" - a legally binding contract between you both stating how much must be payable in child support so both of you know how much must be paid (assuming circumstances don't change). The advantages here is that you both can agree on an end date, insert unemployment, CPI clauses etc which may provide peace of mind. This bypasses the formula and you even could both agree on private collection but still maintain her ability to be eligible for Family Benefits.

Hope this helps.