Services Australia – Child Support has issued a reminder to all families that receive Family Tax Benefit and Child Care Subsidy that it’s now time to provide family income estimates for the coming financial year.
This is also a timely reminder for those who pay or receive child support to ensure that you have finalised your taxation returns and provided updated estimates for child support assessment calculations.
As some taxpayers do not finalise their tax affairs until around this time, Services Australia uses provisional or estimated incomes until they receive information from the Australian Taxation Office that confirms a parent’s adjusted taxable income for child support purposes. If the adjusted child support income is not correctly recorded, this could lead to an incorrect calculation of the assessment. This may lead to underpayments and debts being created or overpayments and credits being applied to the child support assessment.
Penalties including interest and late payment fees are applied to child support debts. If you receive child support, an overpayment may mean that you don’t receive a payment until the credit has been used up. In either situation, this could have an effect on your financial position.
For specialist advice about child support, contact Andrew McCormack at amccormack@thymac.com.au.
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