About Deployment and Centrelink and CSA

[*Cj*]

Work this out.

My sister just got a letter from Centrelink. Saying that when her hubby goes overseas she will have to let centrelink know as it will be income. Even if his not being taxed on it.

This is off there web site. I all so ring centrelink and asked. Yes it's ture starts 1 july


How will my payment change?
From 1 July 2008, any tax exempt foreign income you earn from
an Australian source while stationed overseas will now be included
as income and used to work out your family assistance.
Other foreign income will still be used to work out family
assistance.

http://www.centrelink.gov.au/internet/internet.nsf/filestores/ah1626_0805/$file/ah1626_0805en.pdf

So they take our men/women away from there familys and now do this.

Oh and thats not all you all so have to pay child support on it too. :banghead:

Yeah I think there will be a lot of men and women getting out.

[happymama]

Ugh i was going to say I had never heard that before but looks like its new THATS CRAPPY!!:no:

[woven_wings]

What a load of crud! :banghead:

[Nickschick]

WTF.. so does that mean we lose centre link$$ cause of that?? (notlike its worth it esp for me but still)

eta i didnt vote for Krud

[*Cj*]

That what it means and you could end up with a debt to pay :hair:. We found out 4 days before DH went on his last Deployment. So there is no way we could tell them at the start of the tax year what we will be making...
As we did't know how can you guess about some thing like that.

It won't worry Tax B. (if you get it)

What ever extra money he/she makes on deployment will be added to his income when it come's to centrelink and CSA

[MummaBear03]

:confused: Forgive me as I've been up since about 4 this morning, but I don't get it. Hasn't it been classes as income in the past? People were earning money from being deployed, not being taxed on it, and not paying child support on it, but it's still income? Like I said, been up since really early and didn't sleep much last night either :sleeping:

[sharvs]

I'll play devils advocate here.

My ex was overseas for 7 months last financial year - he earnt close to $80K but his taxable income was $12k hence I am entitled to about $11 a week child support (oh & I should mention we were still together throughout the entire deployment)

I agree that CSA shouldnt go on the entire deployment money, but i think it should go on their normal income. ie if they earn $40k in a normal year without a deployment, then Child support should be based on this - not the extra deployment money.

[*Cj*]

Sharvs you can tell CSA that he was on deployment and they can bring it back up to where it should be. Look here http://www.csa.gov.au/payer/defence.aspx

If it was his tax return from last year don't know if it would be too late. Maybe ring :confused:


I feel the same way you do. Go on there normal income. Fine sure.:yes:

But not there Deployment money. :banghead:

[*Cj*]

Mummabear03 not to sure what your asking?

Its a untaxed income.

[Nickschick]

ok so on top of what we already tell wwanker link what he gets a year we have to add the 60/70 k whatever it is on top of that??

:banghead:

[*Cj*]

You will need to tell them about his income. Just like you do every year. But now they will all so take deployment Allowance and separation Allowance, then add that to your income.

So any money he gets on Deployment which is Tax free they will still take that as income. Do you get what i'm saying????

[KJEmum]

That's about the size of it.

sharvs I can see your point to it all. It would suck severely from your side of things.

After what you said .. he gets 80k but only 12k is taxed ..how does that work .. don't they get the extra $$ on top of their regular income ? That's what I always thought.

My DH has never been to the Gulf (Navy) so never had that chunk of tax free cash to get us out of debt but by golly it would be lovely.

It certainly won't encourage guys to go over there that's for sure. I heard some guys put their hands up to go just for the $$.

[sharvs]

After what you said .. he gets 80k but only 12k is taxed ..how does that work .. don't they get the extra $$ on top of their regular income ? That's what I always thought.
.

As far as I know (and i could be wrong) it works out like this: He was in Australia for approx 4/5 months of the financial year so that is all that is taxed - any money he receives whilst overseas (his normal wage & deployment money) is tax free hence he only had to declare the 4/5 months wage to both the ATO & CSA - thats why whenever the guys get deployed they get a decent tax return.

I did tell CSA about his deployment and they told me it didnt matter, it only went on his taxable income & that i would have to wait until this financial year for it to change.

[Nickschick]

You will need to tell them about his income. Just like you do every year. But now they will all so take deployment Allowance and separation Allowance, then add that to your income.



yes i know i would need to tell THEM about his income but so i get this right running on 2 hours sleep here, brain slow this morning :sleeping:

ok say we told wankerlink DH income is 40k a year. and while his over seas he earns 50k

so we say his income for the year is 90 k yeh??

[KJEmum]

Thnx sharvs, it makes sense now. I just never knew it worked like that but doesn't help not having someone over there to experience it.

Nickschick, that seems correct. It's always better to overestimate.

[*Cj*]

You can over overestimate, Just in case.

You can say what you all ways say, then update if he/she goes on Deployment.
Then pay it back. If you have been over paid.

Or take Tax B, get Tax A back at the end of the Tax year.

If your sure it will be under $91,000 then just take minimum Tax A.

I just think its a load of @#%# my self.
I will just be getting Tax Blf and getting any Tax A at the end of the Tax year.

Nickschick sorry if you took my post the wrong way. I was just trying to put it. So it made since.

[Nickschick]

*cj* is cool hun.. (im just tired cranky mummy atm)

ok i might ring em an over est it cause i just cant be fu**ed atm to work it out correctly...

i rather we not have debut esp with them since whole point of him going was so we got out of debit huh...

ahh i hate centre link, if i didnt want child care benefit i rather not claim anything from them at all... lol

[Shauna]

Ok so i have just read all the posts and im confused...i might look at the website to clear it up but dont they just go by the payment summary at tax time...i have never paid much attention to DH's after being on deployment but does it list tax free pay on there, really by the sounds of it, if it doesnt we are expected to just tell them out of the goodness of our hearts...how would they find out otherwise..this is if it isnt listed at tax time summary....

I probably sound dumb right now, i do apologise if this has been answered somewhere already :-P

Shauna

[ConcernedParent]

Guys, you need to get some independent financial advice here because we are entering the minefields of Child Support, Fringe Benefits Tax and Untaxed Vs Taxed income.


From what I can determine, reading roughly over the details CSA does NOT take into consideration any of the following when working out CSA liabilities, (amounts to pay):

income that is classified as untaxable
allowances that are exempt from FBT reportage
"If you are a member of the Australian Defence Force (ADF) and you serve in war-like operations, you receive a tax-free salary as well as additional allowances paid as compensation for serving in a war-like zone. As a result your taxable income will decrease and your net income will increase. These changes may affect your child support liability."



Please Note: This is nothing new.


CSA assessments are based on the previous years income. THE PAYING PARENT can apply to have it based on their current years income. The other parent is entitled to respond to this application.

What this means for those who don't apply for any changes is the NEXT year the CSA income they receive will be reduced. THE RECEIVING PARENT can apply to have it based on their current years income. The other parent is entitled to respond to this application.

IMHO: It's tit for tat and in the long run not worth the time and effort as it should all balance out over the two years or so.

Regarding Centrelink:

FBT Items - Fringe Benefits
Currently: they use the grossed up amount, (1.9417) multiplied by 49%.
Eg: You use $1000 worth of travel. This is reported on DH's payment summary as $1941. Centrelink then takes into consideration 49% or $951.

From July 1: They will use the grossed up amount only.
Eg: You use $1000 worth of travel. This is reported on DH's payment summary as $1941. Centrelink then takes into consideration $1941.

FTB Items - Family Tax Benefits

From 1 July 2008, any tax exempt foreign income you earn from an Australian source while stationed overseas will now be included
as income and used to work out your family assistance.


Sad but true!

Be very careful here as anyone who gets their payments on a fortnightly basis will have to consider getting them at the end of the Financial Year, (next financial year, not next month), to avoid a debt.


The best thing you can do is get some financial advice or at the very least, try to estimate using their estimators at the following websites:


• www.familyassist.gov.au (http://www.familyassist.gov.au)
• www.centrelink.gov.au (http://www.centrelink.gov.au)
• www.csa.gov.au (http://www.csa.gov.au)

FYI - we ended up with debt a while back. It was a nasty horrible shock - we were just unaware of how things worked at the time. We now only pick up our entitlements when we put in our tax returns.

It works like a forced savings plan for us and we have never had a problem since.

[ConcernedParent]

Brings me back to my recurring theme. ALWAYS lobby to DFA and anyone who will listen for any and all Defence allowances to be made FBT exempt.

If it's FBT exempt, it doesn't get counted anywhere, (that I know of).

[Nickschick]

hubby and i decided, not to claim FTB A so we dont under ess the amount we lose $$ FN from 1st july but meh tbh, i rather not owe money to use my brains to work out just how much he would be earning from july..


we would prob lose same amount anyways when i tell em rough figure and what he would be earning