Understanding Child Support can really help get it right.  “Dave” (not his real name) came to with constant debt and lost tax returns, angry, sad and very worn out

Dave’s estimate Journey –

“Dave” called me recently as each year he felt that he would get CS all sorted and then again more debt. Dave went through the normal feelings that somehow CSA just kept getting it wrong and each time he called they made him feel bad and unsupported.

Dave and I went through his letters and what became very clear was Dave’s work type.

Dave did Shutdowns. Now a shutdown is where a crew goes and cleans and maintains Mining or other heavy industrial assets.

Dave gave me his four previous tax assessments and immediately it was clear that Dave should never ever estimate with the CSA.  Now Dave genuinely had periods of low income but shouldn’t estimate and no one ever told him this.

So let me explain –

When Dave did a shutdown they lasted about 12 weeks and he worked very long days, and then he would have one to two month gaps in between the next one.

So as per other “expert” advice Dave would call CSA and say I am not working, but the experts Dave sought help from did not explain it and just wanted what appeared to be a nice easy payment for help.

Looking at Dave’s history it showed that each year the overall annual income was similar or a little higher. This is important when assessing if an estimate is appropriate.

What this meant was happening was Dave was effectively gifting more CS than needed with every estimate he did.  

So Dave’s’ income was usually around $145,000 per annum. Now more often than not Dave earned this income over 8-9 months in previous years.

So that meant Dave’ earned each month working $16,111 gross income.

The errors of poor advice.

Dave did all he could to keep it correct and would call CSA and advise he is on nil income when work was not on. Then when it went back he would advise his income will again be $145,000 BUT that is not how these work and where he was going wrong.

Dave’s income as annual pay is $16,111 per month or $195,333 so every time he did tax he was getting these great big debts and CSA was saying he earned $190k to 215K in different periods.

He said how “can they be so stupid?” and his advisor said it was wrong.

Well, it was not wrong and by getting correct un-bias support I explained how and why.

You earn $145,000 per year (average) including the down time and on the tools time. So if you elect to go to the nil off the tools then you are asking to be assessed on the tools at the monthly pay and creating larger payments doe the estimate period. You actually do not have income change and should leave along based on the annual which already considers low and high periods.

Dave had two kids under 13 he had access to for 100 nights per year so regular care under CSA provisions.

So Based on the $145K – CS is 386 per week and then $195k $504.

So as each July he was not working he would do the nil, for a minimum each of 44 weeks every year (sometimes more over the years) he would pay the $504 per week and nil for 8 weeks.

So that meant this when he did his tax each time he got $5192 debt for a saving in that 8 weeks off work of $1544.

So for almost four years Dave had paid $20k more CS than needed.

This also caused his ex partner which he was not aware 7k in Centrelink debt over that same time which was impacting other parts of their co-parenting relationship.

Dave this coming year will get his tax back the first time ever and is not on an estimate. His ex will not get an FTB debt, he will not get a CS debt and will not pay more than needed.  So Dave this year is $4k better off for getting real answers and explanations.

Good information is important and this site is about that.

Education to make the right choices, and a detailed guide when you need to ask to be informed, and when you cannot find the answers we will have a chat and get them to you.