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Child Support Payments – What are Your Liabilities?

How Are Child Support Payments Determined in Australia?

Child Support cases are handled by Services Australia, whom calculate the amounts to be paid through an internal process. They take into consideration a various range of income amounts when determining how much child support each parent is liable to pay. Through this process, they will come up with an amount that is to be paid to the other parent in order to help in paying the costs associated with raising a child.

What Counts as Income for Child Support?

An “income amount” (as defined by Services Australia) does not just include a conventional weekly, fortnightly or monthly payment from an employer. The list of what counts as incomes is as followsincludes:-

  • Personal earnings (eg wages, salaries, bonuses, commission, etc),
  • Monies (cash)
  • Valuable consideration (eg you receive goods, services or other benefits in exchange for an item, action or promise)
  • Profits (amount of earnings in excess of its expenses)

In the assessment, gross income amounts will be used. This means that it is calculated prior to tax or other deductions are made from the total.

Other examples of income include financial investments and non-Australian income.

Are There Types of Income which are Exempt from Consideration?

Yes, there are some forms of income which are exempt from being assessed for child support payments.

  • Rent assistance from the Government
  • Free board or lodging you mat receive
  • Regular payments from a close relative
  • Emergency relief payments
  • Repayments for work expenses
  • NDIS payments

Can Child Support be Taken Out of Workers’ Compensation Payments?

Weekly workers’ compensation payments are considered to be income when calculating a parent’s child support obligations. Their purpose is to act as a supplement to the income that you are missing as a result of your absence from work. As such, you may be required to pay a portion of your workers’ compensation payments to the other parent as part of your child support contributions.

In addition, if a parent is in arrears with their child support payments, the Child Support Agency may collect the payments in arrears from the compensation payment. This would leave you with a partial payout.

Does Personal Injury Compensation Effect Child Support Payments?

When a parent receives compensation after a personal injury claim, the lump sum may be taken into account by the Child Support arm of Services Australia in deciding whether child support payments should be altered. This will be judged on a case-by-case basis, as a lump sum payment is inherently different to ongoing workers’ compensation payments.

GC Law are experts in workers’ compensation claims and we are here to help you. If you’re confused about the complexities of workers compensation and personal injury payments, look no further!

If you need legal advice on any personal injury claim contact GC Law now on 1300 302 318 or visit our Free Case Review page, we’ll review all the details of your case and potential claim first, to determine if you have a good chance of success in claiming a compensation payout.

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