Suppose you have experienced a change in income after separation and believe your post-separation earnings should not be included in child support calculations. In that case, you can submit an application for post separation income to be excluded.
This application for post separation income to be excluded is assessed by Services Australia and is available to parents whose income changes due to circumstances such as a new business venture, career shift, or a one-off financial event unrelated to the previous relationship.
Under family law, these applications are considered based on fairness and the financial responsibilities of both parents.
What Is Post-Separation Income?
Post-separation income refers to any earnings, investments, or financial gains you acquire after separating from the other parent.
Child support assessments are based on your adjusted taxable income, which includes wages, business income, rental earnings, and investments.
However, in some cases, certain types of income gained after separation may be excluded if they meet specific criteria.
Key Takeaway: Your income after separation is generally included in child support assessments, but you may apply for exclusions under specific conditions.
Also read: Notice of Intention Family Law: What You Need to Know
When Can You Apply to Exclude Post-Separation Income?
You may request to exclude post-separation income from your child support assessment if:
- You started earning income from a new source after the separation that was not planned before the separation.
- You made a financial decision that significantly changed your income after the relationship ended.
- Your income increased due to a one-off event unrelated to your previous financial circumstances, such as an inheritance or redundancy payout.
If your circumstances align with these situations, you can submit an application through Services Australia. Your request will be reviewed based on fairness to both parents and the financial needs of the child.
Key Takeaway: You may apply to exclude post-separation income if it arises from a new source or a significant change after separation.
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How to Apply for an Exclusion
To apply for post-separation income exclusion, follow these steps:
- Gather supporting documents – These may include payslips, tax returns, business records, or evidence of financial changes.
- Complete the relevant form – You can obtain the form from Services Australia’s website or request it by phone.
- Provide details about your post-separation income – Explain why the income should be excluded, how it differs from your pre-separation earnings, and how it impacts your financial situation.
- Submit your application – Applications can be lodged online, via mail, or through a Services Australia office.
- Await assessment – Services Australia will review your application and may request additional information before making a decision.
Key Takeaway: A well-documented application improves your chances of successfully excluding post-separation income from child support calculations.
What Happens After You Apply?
Once your application is submitted, Services Australia will review:
- The timing and nature of the income increase.
- Whether the income was foreseeable before separation.
- How the exclusion would affect child support payments.
You may be contacted for further details, and the other parent will be given an opportunity to respond.
If your application is approved, your child support assessment will be adjusted accordingly. If it is denied, you have the option to appeal the decision.
Key Takeaway: Services Australia assesses your application based on fairness, timing, and the impact on child support obligations.
Can You Appeal a Decision?
If your application is denied, you can request a review through Services Australia’s internal review process.
If you disagree with the outcome, you may escalate the matter to the Administrative Appeals Tribunal (AAT).
Key Takeaway: If your application is unsuccessful, you can request a review or appeal through the AAT.
Applying to exclude post-separation income can be an important step if your financial situation has significantly changed.
By ensuring your application is well-documented and aligns with Services Australia’s criteria, you can improve your chances of a favourable outcome.
A clear and well-supported application is more likely to result in the exclusion of post-separation income from your child support assessment.