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From: Mike .
IPs, the ATO and child support - HELP!!!!!!!
From: Robert
Date: 6/22/00
Time: 9:12:30 AM
This is a big issue that many people out there may have experience or advice on. I need all the help I can get.
At the start of last year, the Child Support Agency (CSA) amended their legislation to prevent investment negative gearing from reducing the actual payable child support by the paying parent. Prior to this, only the paying parents taxable income was used to calculate maintenance payments. Firstly, I already pay nearly $11K NET (approx $15K or more gross) for 2 kids based on my $50K income.
My issue is this: I want to invest and maximise my future prosperity however I am concerned about the impact of CSA payments on possible property investments. Due to this, when my current wife and I bought our house, we put 99% of it in her name (I get moved around a lot in jobs - military life !) so that rental income wouldn't create a greater burden on my income. Currently she works yet is expecting this December and may not work for a while after child birth (loss of tax advantage on her income).
Has anybody got experience with this CSA ruling and is it possible to conduct effective property investments now considering that the NET rent is added to my taxable income for maintenance payment purposes (paying 27% of child support income for 2 kids. Child support income being taxable income + NET rent - living allowance of about $10 800)?
Furthermore, my kids are 10 and 7 therefore I have an 11 year maintenance commitment left. I don't want to wait this long to invest.
All help welcome.
IPs, the ATO and child support - HELP!!!!!!!
From: Robert
Date: 6/22/00
Time: 9:12:30 AM
This is a big issue that many people out there may have experience or advice on. I need all the help I can get.
At the start of last year, the Child Support Agency (CSA) amended their legislation to prevent investment negative gearing from reducing the actual payable child support by the paying parent. Prior to this, only the paying parents taxable income was used to calculate maintenance payments. Firstly, I already pay nearly $11K NET (approx $15K or more gross) for 2 kids based on my $50K income.
My issue is this: I want to invest and maximise my future prosperity however I am concerned about the impact of CSA payments on possible property investments. Due to this, when my current wife and I bought our house, we put 99% of it in her name (I get moved around a lot in jobs - military life !) so that rental income wouldn't create a greater burden on my income. Currently she works yet is expecting this December and may not work for a while after child birth (loss of tax advantage on her income).
Has anybody got experience with this CSA ruling and is it possible to conduct effective property investments now considering that the NET rent is added to my taxable income for maintenance payment purposes (paying 27% of child support income for 2 kids. Child support income being taxable income + NET rent - living allowance of about $10 800)?
Furthermore, my kids are 10 and 7 therefore I have an 11 year maintenance commitment left. I don't want to wait this long to invest.
All help welcome.
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