Do you pay or receive child support? Are you exempt from filing a tax return?
Did you know that even if you are otherwise exempt, you may still be required to file a tax return in order to avoid negative impacts on your child support assessments?
You are required by law to file a tax return by 31 October 2020, unless:
You were in receipt of a listed Government pension, allowance or benefit for the whole of the financial year; and your taxable income for the 19/20 financial year was less than $25,575.
Advising the ATO that you are not required to lodge a tax return is not sufficient to meet compliance with this requirement. You must actually file a tax return.
Should you fail to do so, your child support will likely be assessed based on your most recent tax return plus an amount for inflation or two-thirds of the Department of Social Services’ male total average weekly earnings, whichever is higher. This could result in a significantly higher assessment of child support than would otherwise be the case.
If in doubt, file a tax return by 31 October 2020 to ensure you are not impacted by this little-known rule.
For more information about how your income affects your child support, visit https://www.servicesaustralia.gov.au/individuals/services/child-support/child-support-assessment/how-we-work-out-your-assessment/how-your-income-affects-your-child-support.
WE CAN HELP YOU
You can also contact Alex Mandry Legal Group on (08) 7087 4544 for assistance with any of your child support matters.