Can anyone offer any advice for my situation???
I bought a property as my prime place of residence back in 99 after my divorce.
I moved out last year and rented the property out as i moved into my share with my fiance.
We have now purchased and are living together, leaving my original property as a negatively geared rental.
I recently had my tax assement done which came back from the ATO saying that my taxable income is $X.
I then had a letter from the CSA saying that my income is classed as $X + any rental money recieved.
I explained to them that as the rental income is negatively geared it shouldn’t be included as the ATO doesn’t include it.The answer I got was that they view it as an income no matter wether or not it is classed as negative gearing by the ATO.
Has anyone had any similar experiences? If so what advice can you give. Also if I sold how would the profit be affected (doubled in price since I purchased) by CGT and would the CSA also see this as an income also?
Dear Rooney,
………..Oh My God……I am mortified……any wonder that 15 men a week committ suicide directly related to CSA problems!!!! I dont know if I have got any constructive advise for you other than…..speak to someone higher up, surely this cant be right!!! The tax department dont tax you on the full margin, surely these people cant either.
………Good luck…sorry I cant be of any help….just wanted to express my heartfelt sympathy more than anything!!!!
Larellelj
Hi Rooney,
I have a “Private Agreement” with my daughters mother, which means we agree on what amount to pay in child support, I also help with school fees, clothes and other stuff.
I also get an assessment with some stupid amount that they think I should pay, but because of this Private Agreement I don’t have to pay it.
I don’t know if this helps you, and I didn’t go through a divorce, but if you had the Private Agreement then maybe you wouldn’t have some bastard in an office telling you what you should pay.
You have my sympathy, if I was paying the money I am assessed to pay, I would be renting and could not afford to have my 2 kids. Child Support should be 50-50 not 90-10.
I hope it all works out.
– Mark
Rooney
That is correct, they do not take into account negative gearing (like centrelink).
I think they have to do this as it would be easy for people to shrink their income down to $0 and avoid paying any support. I don’t know if using a trust/company is a way around it, but cenrelink want to treat assets owned by your trust as being your own if you control the trust.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks everyone who has replied.
I will probably talk to my accountant to see if anything can be done eg putting it as a trust.
If not i think I will just have to treat it as a learning expierience, and any further IP’s will have to go entirely in my new wife’s name.
Rooney.
[8][8] I hope not..
I’ve got private agreement too, and get along well with my ex.. otherwise same new assets into different name, seems silly……..
“Money is a currency, like electricity and it requires momentum to make it Effective”
From the other side of the fence…
I’m tired of my ex trying to hide all his income so he reduces his support.
Just because you split, shouldn’t mean that your financial responsibilities end.
[
]Hey Shushar,
I can see where your coming from and understand your point of view.
My ex wife knows about my property and has even tried to help me with the situation as I’m not trying to get out of paying her anything.
We were actually trying to work out an agreement between us where I would be paying more than I should for my taxable income but less than what the CSA says I should pay because of the rent that I recieve which is negativly geared, but because my ex wife chooses not to work and is on a single parent pension centrelink have told her that if she agrees to accept less money from me they will reduce her pension by the same amount.
So the short of it all is that even thought we are on good terms and she can see that what is happening isn’t fair we cant come to an agreement for “our situation” between us because someone in an office who has never met either of us tells us we cant do it!Don’t get me started on this one, one child 18% of my wage.. yeah right.. I pay child support always have, also help with school fees uniforms and a host of other things and why not I am the father… But what if I have a net income of 1000 000 (I wish) ex gets 180 000.. Someone tell me where the logic is shoudn’t we pay an appropriate amount to support the child, why the more I earn the more my ex gets to sit at home drink and smoke and look after her five children whilst receiving child support from 3 fathers.
Yeah Larelle no wonder 15 men a week commit suicide. Some of us just chose to leave the country[
!]Rooney…….
CSA…..if you are a Company entity CSA will not even bother chasing you……….. my ex earns over $300k per annum from “childcare centres” pays absolutely nothing in childsupport for his two children whilst my new partner pays $500.00 per week because he is on a salary. Ex says he only earns $10,000.00 per annum from his Company……and CSA leave him alone, have done since 1996…… I gave up chasing it.
So you could form a Company and if your wages are salaried, become if you can , a subcontract employee with your Company paying your wages.Mopsy
Rooney…….
CSA…..if you are a Company entity CSA will not even bother chasing you……….. my ex earns over $300k per annum from “childcare centres” pays absolutely nothing in childsupport for his two children whilst my new partner pays $500.00 per week because he is on a salary. Ex says he only earns $10,000.00 per annum from his Company……and CSA leave him alone, have done since 1996…… I gave up chasing it.
So you could form a Company and if your wages are salaried, become if you can , a subcontract employee with your Company paying your wages.Mopsy
Thanks for the advice Mopsy, but my aim isn’t to get out of my obligations to pay child support but to keep the amount that I have to pay to a fair and reasonable amount.
Rooney
Rooney, if mopsy’s suggestion is feasible for you it might pay to consider it. Then the CSA would ‘assess’ what you had to pay, which would be less, but you and your ex could come to the agreement that you had prior to CSA/Centrelink involvement and you’d both wind up winning! I’ve got a friend in the same situation. He said that for every $$ ‘saved’ or gotten back through neg gearing, 18c immediately goes to child support.
Cheers
Mel
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
