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  1. #1
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    Default Rdundancy and Child Support Assessment?

    I am Single dad who shares care of my daughter with me ex 50/50. My Ex got made Redundant recently and received a redundancy payment. You know the norm so many weeks for each year of service.
    Now the thing is she has told me that the payment was like over $20K and she told me it was tax free. She then tells me that because this payment is tax free it doesn't get included in our child support assessment! Can anyone tell me if this is true? Because if it is this seriously unfair on me / the other parent, as when ever she gets a another job and come tax time she will be more than likely $20K better off financially than me yet I still have to pay her child support.

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    Hello my DP was made redundant last January. I can tell you this a) was taxed b) affected his annual taxable income c) meant he has to pay more child support for this financial year as the estimate goes on previous years income.

    I can tell you it has certainly impacted us financially - although in my opinion the child support system always tends to favour the mother.

    I would imagine come tax time you will be informed of any changes to child support!

    Good luck!

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    How on earth could it not be taxed? It is income.

    Id not stress too much about it knowing any discrepancy will be revealed at tax time.

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    redundancy payments are not tax free. They certainly include substantially reduced tax, but they are still taxed and are still included in your ex's taxable income.

    I dont know how they are treated for child support, but I cannot imagine that the payment would be exempt - and it most certainly is recorded on the group certificate/tax return (its just treated differently to ordinary income)

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    I have had a redundancy payout a few years ago, it was definitely taxed (different rate to normal income) and also needed to form part of my tax return that year. I actually saw a tax accountant that year to make sure I did it right.

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    Quote Originally Posted by theonlywayisjessx View Post
    Hello my DP was made redundant last January. I can tell you this a) was taxed b) affected his annual taxable income c) meant he has to pay more child support for this financial year as the estimate goes on previous years income.

    I can tell you it has certainly impacted us financially - although in my opinion the child support system always tends to favour the mother.

    I would imagine come tax time you will be informed of any changes to child support!

    Good luck!
    in regard to point c
    if his income has changed this year he CAN apply for a reassesment

    how do I know this? my ex has just rung child support and verbally told them his income has changed, he works casual so did not work much the few weeks before he did this,
    they have reduced his amount (based on his request) to a whopping 34$ a month for two children

    his assesment for the previous financial year still stands at 33 grand for the year, his next assesment will be 33 again but he has had the next 6 months reduced to bellow the self support amount, it will finish at the end of the financial year.


    The child support system 'favours' no one.

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    It is definitely taxed and will impact child support.

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    Quote Originally Posted by Nemmi1987 View Post
    in regard to point c
    if his income has changed this year he CAN apply for a reassesment

    how do I know this? my ex has just rung child support and verbally told them his income has changed, he works casual so did not work much the few weeks before he did this,
    they have reduced his amount (based on his request) to a whopping 34$ a month for two children

    his assesment for the previous financial year still stands at 33 grand for the year, his next assesment will be 33 again but he has had the next 6 months reduced to bellow the self support amount, it will finish at the end of the financial year.


    The child support system 'favours' no one.
    Hmm perhaps let me rephrase this the child support system favours women who don't work and penalises men who work hard and earn good money.

    And this is just my opinion based on our experience (not trying to offend anyone!) my partner earns a decent wage and even if he had 50% custody he would have to pay a significant amount of child support I'm talking 400-500$ a fortnight. I don't begrudge the fact he has to pay child support he had a child he has the responsibility to look after said child. In addition to paying child support my partner has had to buy school shoes, pay football rego and buy football boots because she "can't afford it" yet has just bought herself a new car, hair and nails are always done. It's frustrating

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    Quote Originally Posted by theonlywayisjessx View Post
    Hmm perhaps let me rephrase this the child support system favours women who don't work and penalises men who work hard and earn good money.

    And this is just my opinion based on our experience (not trying to offend anyone!) my partner earns a decent wage and even if he had 50% custody he would have to pay a significant amount of child support I'm talking 400-500$ a fortnight. I don't begrudge the fact he has to pay child support he had a child he has the responsibility to look after said child. In addition to paying child support my partner has had to buy school shoes, pay football rego and buy football boots because she "can't afford it" yet has just bought herself a new car, hair and nails are always done. It's frustrating
    Im sorry that your ex got a dud, he doesnt have to buy those extra things but it appears his ex is milking what she knows she can get from him

    I dont work at the moment, I would love to but have no one reliable to watch my children and get them to and from school etc if the work day starts before school time or finishes late at night and unfortunately someone has to be responsible for that

    the child support system favours no one, it is designed to 'equal out' the income to ensure the lifestyle a child is used to is maintained at both houses,

    some 'women' may abuse the system by taking advantage and requesting extra just as some 'men' may take advantage of the system by repeatedly not lodging tax stuff, lying about income assessment etc etc etc

    the system does not give a damn either way, in my experience I would say it 'favours' fathers who dont wish to support their children but I know it doesn't actually favour anyone, it is an income vs lifestyle system and that is all

    if you have concerns as to how the child support may be being spent you can attempt to negotiate with child support to buy items and bills etc instead of cash money,

  11. #10
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    I have just found this on ATO website, if this is true and child support only takes taxable income into consideration. This is really unfair as here I am not earning a large income and then there is my ex who has her income for the year and then this extra $20k+ that is just forgotten about. I have no qualms about child support especially while my ex is unemployed but not when she's received this extra income which is not taken into account. As people have said the child support system is there to make things equal and fair, but this is certainly not the case here.

    A genuine redundancy payment is a payment made to you as an employee who is dismissed because the job you were doing has been abolished.
    Depending on your employment conditions, for example amounts your employer is required to pay under the industrial agreement or employment contract, a genuine redundancy payment may include:
    • payment in lieu of notice
    • severance payment of a number of weeks' pay for each year of service
    • a gratuity or 'golden handshake'.
    The following payments are not included in a genuine redundancy payment:
    • salary, wages or allowances owing to you for work done or leave already taken for work completed
    • lump sum payments of unused annual leave or leave loading paid on termination of employment
    • lump sum payments of unused long service leave paid on termination of employment under a formal arrangement
    • payments made in lieu of superannuation benefits.
    Any payments that meet the conditions of a genuine redundancy are tax free up to a limit based on your years of service with your employer. The tax-free limit is a flat dollar amount plus an amount for each year of completed service in your period of employment with your employer. Indexation changes the tax-free limit on 1 July each year.


 

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