They did this to my partner. He is sole director of his own business. His ex was a director before they divorced. Instead of paying personal/domestic expenses from her own wage, she paid for her share through the business (no excuse but he had no idea of how the finances were run when they were together...he was happy the bills were paid).
So when it came to child support, she told them that he paid all personal expenses from the business and they bumped his income up by a huge amount compared to his taxable income. When he questioned it, they required him to provided 6 months worth of statements for every bank account/credit card statements in his and the company's name as well as documentation for every vehicle. It was almost like a tax audit.
He was accountable to them for every transaction. It took months of work for him during his personal time and office staff during work hours. In the end, he told CS he was giving up as the deadline was approaching (they first gave him 2 weeks but extended it) and CS were still asking for more info. They ended up reducing the amount by approx 5%.
One of the 2 kids have since come to live with him. CS reduced by 50% which is odd because she earns less than half of what he does (legit) and even less than what CS took their figures from. He is not questioning it though! The kid with him is nearly 18 but has been working for the past 18 months. When this kid was still with her, and the assessment took place, CS weren't interested that he was working and ignored his income. But when she pointed it out after the kid came to live with dad, CS wanted payslips from the kid!
So sounds like those running their own business get special treatment from CS. On the other hand, my ex is a sole trader and CS would not touch him because I had a FVIO against him. They told me I had to approach Centrelink and may be entitled to increased family payment.
So when it came to child support, she told them that he paid all personal expenses from the business and they bumped his income up by a huge amount compared to his taxable income. When he questioned it, they required him to provided 6 months worth of statements for every bank account/credit card statements in his and the company's name as well as documentation for every vehicle. It was almost like a tax audit.
He was accountable to them for every transaction. It took months of work for him during his personal time and office staff during work hours. In the end, he told CS he was giving up as the deadline was approaching (they first gave him 2 weeks but extended it) and CS were still asking for more info. They ended up reducing the amount by approx 5%.
One of the 2 kids have since come to live with him. CS reduced by 50% which is odd because she earns less than half of what he does (legit) and even less than what CS took their figures from. He is not questioning it though! The kid with him is nearly 18 but has been working for the past 18 months. When this kid was still with her, and the assessment took place, CS weren't interested that he was working and ignored his income. But when she pointed it out after the kid came to live with dad, CS wanted payslips from the kid!
So sounds like those running their own business get special treatment from CS. On the other hand, my ex is a sole trader and CS would not touch him because I had a FVIO against him. They told me I had to approach Centrelink and may be entitled to increased family payment.