FAQ - Frequently Asked Questions
Is Child Support Taxable
Justice Family Lawyers Sydney
Child support payments you receive are not considered taxable.
You do not have to declare child support payments to the Australian Tax Office (ATO) when filing your tax return.
They are one of the amounts that the ATO does not consider income, and, therefore, not subject to tax.
The guidelines are quite general and suggest that most child support payments are not considered taxable.
You may want to check that this is the case for payments you receive.
Most spousal maintenance payments are the same; you do not have to pay tax on them.
The ATO’s evaluation of child support as not taxable relates to all forms of child support, including child support managed by the Department of Human Services (DHS) and self-managed child support.
The ATO and DHS are authorised to share information with each other for the purposes of paying and collecting child support and enforcing child support payments.
The DHS may use taxation information to enforce the payment of child support. You may receive child support payments periodically, as a one-off lump sum, as certain non-cash items or as a combination of all three.
Non-cash items include specific payments such as school fees and medical fees. These types of child support payments are also usually not taxable.
Although child support is mostly not taxable, the amount of child support you receive can influence other government and Centrelink payments when the DHS assesses your adjusted taxable income.
The DHS uses your adjusted taxable income to assess your eligibility for certain payments such as the family tax benefit, child care subsidy and parental leave pay.
Income affects how much child support you pay or receive in the first place.
Although you may not have to pay tax on child support, several other payments from the Department of Human Services are still taxable.