Single parents paying child support, who are now earning significantly less money than they were last year, have just days to update their Centrelink income estimates.
Those who don’t make the change online by June 30 may be asked to pay a higher rate of child support for the upcoming financial year, based on their adjustable taxable income (ATI) from the current financial year.
If a parent is receiving 15 per cent less than their ATI from the current financial year, it may impact their financial capacity to support their children, according to the Department of Social Services (DSS).
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An income estimate recognises this, and if the estimate is accepted by the Child Support Registrar, it will replace the ATI’s role in defining the annual rate of child support payable.
“From July 1, we’ll use your income from last financial year to calculate your child support,” Services Australia said.
If that new income estimate is lodged by June 30 using the Child Support online account, Services Australia said: “Instead of using your income from last financial year, we’ll use the estimate you gave us for the 2024-25 financial year.”
Income estimates can be made at a later date, but any changes they then have to the child support rate will come in to play from that point, rather than being backdated to the beginning of the 2024-25 financial year.
“Estimates provided before 1 July apply from that date. If you tell us after, we can only use it from the day that you tell us,” Services Australia said.
For parents whose income has dropped by less than 15 per cent, DSS said: “Smaller changes to a parent’s income are considered to have less of an immediate impact on their financial circumstances, and will be reflected in their ATI for their child support assessment in the following year.”