9 Arguments AGAINST Child Support ASSESSMENTS
There is no size fits all. For some, assessments are the way to go. For others, an agreement is a much better fit. And for a few, a combination of both works best.
Child support assessments have quite a few downsides. Nobody ever said they are ideal. So it comes down to weighing up the pros and cons of each solution.
So here are 9 reasons why assessments might not be for you – looking at it from the paying parent’s perspective (if you are the one receiving child support, some of this works the other way for you).
1 – Loss of Privacy
You have Services Australia poking around in your family affairs and your Ex talking to them about you. Neither of which is great.
2 – Big Brother Watching
You already have the ATO on your back. Now you also have Services Australia taking an active interest in how much you earn. And the two are talking to each other. Think double Big Brother.
If your tax set-up is already standing on wobbly legs, you don’t want to put more weight onto it.
3 – Services Australia Not on Your Side
Services Australia is meant to be impartial. However, the more you pay, the less Services Australia has to pay out in Family Tax Benefits, so it doesn’t take Einstein to work out how this one will go.
4 – Risk of System Errors
You depend on Services Australia to get it right. They don’t always do.
5 – Uncertainty about Future Payments
You never know how much you will pay in the future. Child support can become this higher force that seems to be constantly hanging over you and controlling your life.
6 – The More You Earn, The More You Pay
Assessments link your child support to your income. So the more you earn, the more you pay. The same applies to income tax. So both slow you down no matter how hard you work.
Having your child support linked to your income can drain all motivation away. It can feel like there is just no point in working hard since it all goes to your Ex anyway.
The less you see your kid, the more child support you have to pay. So there is a financial interest for the other parent to limit your time with your kid.
If you go for an assessment, you can’t have a child maintenance trust (‘CMT’). So you can’t finance your child support out of tax savings.
However, a child maintenance trust is complicated. Not many people do it. There are some strong pros and cons regarding a child maintenance trust. So the fact that you can’t have a CMT with an assessment, is not necessarily a strong argument against an assessment.
So you see. It all depends.
