What Counts as Income for Child Support Purposes in Australia?

When it comes to calculating child support, one of the most important — and sometimes confusing — questions is: “What counts as income?” The answer can significantly affect how much is paid or received.

Services Australia uses a specific definition of “adjusted taxable income” when working out how much a parent can contribute to their child’s financial needs.

Income That Does Count

The following types of income are included in the child support calculation:

• Taxable income from your most recent tax return

• Wages and salary

• Self-employment income

• Rental income (after expenses)

• Fringe benefits (like a car or housing allowance)

• Certain government payments, including JobSeeker or Parenting Payment (but not Family Tax Benefit)

• Foreign income that would be taxable if earned in Australia

• Superannuation contributions above the standard employer rate (if considered part of a salary package)

Income That Usually Doesn’t Count

Some forms of income are excluded or treated differently:

• Family Tax Benefit

• Child Care Subsidy

• One-off gifts or inheritance

• Tax-free government pensions and benefits

• Lottery wins (unless they generate ongoing income)

What If Your Income Has Changed?

If your current income is significantly different from what’s on your last tax return, you can request an update to your assessment. This helps ensure the calculation reflects your real situation, especially if you’ve lost a job or had a drop in business income.

You can also apply for a change of assessment if:

• You believe the other parent is not declaring all income

• You’re receiving less income due to circumstances beyond your control

• You’ve taken on extra responsibility for the children

Why It Matters

Accurate income information is essential to a fair assessment. Being transparent helps both parents share the financial responsibility and ensures that children get the support they need.

We have many years experience in this area and can help you understand your specific circumstances and how they relate to child support obligations.