If the income used in the assessment is not correct, either parent can provide an Estimate of Income to Services Australia – Child Support in the following circumstances:
When lodging an Estimate of Income, parents are also asked to provide the income they have earned up to the day on which they lodge their Estimate. It is important that this ‘year-to-date’ figure is accurate, as it will be used when the SA-Child Support reconciles the estimate with the actual income that the person has earned.
If there is any change to their income during the estimate period, parents are obliged to update their estimate of income by notifying SA-Child Support.
Estimates are reconciled with taxable income after the end of the financial year. If the actual income is higher than the estimated income, the assessment will be amended to use the higher income for the estimate period. Penalties can apply if a person significantly underestimates their income.
NB: It is important to ensure that estimates include all types of taxable income such as a drawdown on superannuation or any event that might attract capital gains tax.