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  1. #1
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    Default child support/family tax question

    I have heard, that if you are overestimate, received family tax benefit and child support, even if its a small amount such as 10 per month, you can be left with hundreds of dollars taken it of the arrears/supplement payments.
    Does anyone know if there is any truth to this?

  2. #2
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    Sorry I think I misunderstood your question (not much sleep lol)
    Last edited by Little Miss Sunshine; 12-07-2014 at 07:18.

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    I mean overestimated, like you told centrelink you earned 70,000 for the year but only earned 60,000.

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    If you overestimate your family income, you can end up receiving much less than you are entitled to throughout the year and come tax time you will receive an arrears payment of the difference.
    How much you receive is really dependent on your income and the amount you've overestimated, as well as your ftb entitlement.
    You don't receive anything extra as such. Based on your family income you are entitled to receive 'x' amount of ftb. You can elect to take this as fn payments, lump sum at eofy, reduced fn payments and a larger arrears payment come eofy, etc.
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  5. #5
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    Quote Originally Posted by HarvestMoon View Post
    If you overestimate your family income, you can end up receiving much less than you are entitled to throughout the year and come tax time you will receive an arrears payment of the difference.
    How much you receive is really dependent on your income and the amount you've overestimated, as well as your ftb entitlement.
    You don't receive anything extra as such. Based on your family income you are entitled to receive 'x' amount of ftb. You can elect to take this as fn payments, lump sum at eofy, reduced fn payments and a larger arrears payment come eofy, etc.
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    If the FTO knows about child support arrangements, does child support affect the arrears payments at the end of the financial year? - If that makes sense
    Ive just heard a few conflicting stories on this

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    If you pay child support, that doesn't come into reduced income for FTB entitlement does it?

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    Quote Originally Posted by MissFaery View Post
    If you pay child support, that doesn't come into reduced income for FTB entitlement does it?
    I would think that having told centrelink upfront everything would be organised and everything is taken in to consideration. But im hearing stories people are having their arrears payments reduced or gone because of child support. But my theory on that would be if they hadnt told them upfront, but they swear they did.
    It seems very confusing this year!

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    Quote Originally Posted by momoftwo2 View Post
    If the FTO knows about child support arrangements, does child support affect the arrears payments at the end of the financial year? - If that makes sense
    Ive just heard a few conflicting stories on this
    Child support affects the rate of ftb you receive, doesn't it? So it would impact on the overall rate you are entitled to. So I guess if your ex's income estimate was way off and they earnt significantly under or over what they stated, it could affect your ftb and consequently supps and arrears payment come eofy.

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    Quote Originally Posted by crankyoldcow View Post
    I don't understand why or how this would happen. I always overestimate with Centrelink by at least $2000 and have never had this happen to me. I deliberately overestimate with Centrelink as I get an annual payrise in Feb and want to make sure I cover it. I don't want to inadvertently underestimate and be left in a position of having to pay money back. The child support agency calculate child support based on both mine and exdhs's previous financial years income, so no need to even provide them with an estimate. I *think* I need to inform them if my income will vary by more than 10% over the previous years.

    Overestimating means receiving less FTB. I don't understand how this translates to having to pay money back.

    OP are you sure these people didn't underestimate their income?
    See, Im not sure. They say didnt, but there wouldnt be another reason why.


 

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