QLD child support & capital gains

[Cameron1977]

hi - I'm looking to sell some shares soon that will have some capital gains - enough I guess to affect my child support. i know my loses has no effect, but do gains get added to my income assessment for child support? or is purely based on my job income?
it will be a once off so even if it does, would I be able to get it amended to show that isn't what I'm going to be earning ongoing and get it adjusted?

 

[Atticus]

Ordinarily it would from part of your income assessment for that year ..... There may be an option to reduce it by up to 30% though, IF you have been separated for 3 years or less... Does that apply to you?

 

[Cameron1977]

it will be 3 years just after this fin year. not sure why years matters?
it says you can adjust if a 15% change on the child support website (up or down)

 

[Atticus]

it will be 3 years just after this fin year. not sure why years matters?

There is a window of 3 years post separation in which you can apply to have additional income excluded from your adjusted taxable income for child support .... There is a 30% cut off (as in, the exclusion should not reduce your ATI by more than 30% for that year) ..... Have a read of the link below. I reckon you would meet the criteria to be eligible..

2.5.2 Additional income earned post separation | Child Support Guide

 

[Cameron1977]

ok so reading that sounds like I might be able for that. strange that is only lasts 3 years
i do find it strange that the harder someone works or more successful risk taken the more they have to pay to someone else especially when care is 50% shared. but appreciate its hard to get perfect and its not a bad system.
this isn't about not paying support - 100% will follow the rules and have to date - its just i would rather the investments and my work is focused on benefiting my child and not her and her other children.

thanks for the link! I might speak to child support further.

 

[sammy01]

Yeah get it in writing from CSA. WHY? scenario - they verbally say yep No worrie's Cameron.... You sell the shares, they say NOPE. OR the ex could appeal and claim it isn't extra work to get you back on track, it is selling an asset that arguably should be part of the asset pool.

And you can safely rely upon CSA to fcuk it up.

 

[Atticus]

Fair point by @sammy01 above .... If the shares (or money used to purchase them) was acquired pre separation, they should form part of the joint asset pool for division. In that event you probably want to rethink cashing them out at all.

 

[Cameron1977]

We have already settled and all is done now. Was quite some time ago.

the shares were purchased after separation and after the settlement.

 

[sammy01]

so can you hold off? Apart from anything else the markets are volitile at the moment....
Suggestion. Sell some in May next year and another bunch of shares in August. So you're splitting the tax consequence over two tax years.