If your income drops by 15% or more compared to the income used for your assessment, you may be able to estimate your income for child support. This could reduce the amount you have to pay if you’re a liable parent. It could increase the amount you get if you’re a receiving carer.
When you can estimate
You can estimate your income for the current tax year if all of the following apply.
- You have or have had an active formula assessment in the current month.
- Your payments are above the minimum annual amount of child support.
- Your total income for the tax year will drop by at least 15%.
- Your annualised income for the rest of the year is lower than the income you’ve been assessed on.
- Your payment amount has not been set by court order or administrative review.
If your child support payments have been set by court order or administrative review, you'll need to go back to court or apply for a new review to change them.
Estimations apply from the first of the month we receive them in, or the start of your liability if it has begun partway through the current month.
If your income changes again
If your income goes up or down after you’ve estimated, you can re-estimate your income if you still meet the criteria.
If your income goes up after you estimated and you no longer meet the estimation criteria, you should cancel your estimation. Otherwise, you may end up with an amount to pay once your child support is squared up.
At the end of the year
After the end of the tax year, usually 31 March, we’ll square up your estimation to see if you paid the right amount of child support. If your income was higher than what you’d estimated, you may have an amount to pay.
If your estimation includes overseas income, you'll need to send us proof of this at the end of the tax year.