Income processing for Child Support customers (International parents) 277-07030000
Expand allThis document explains how to use international incomes in child support assessments. It includes, how to:
- get income information for customers living overseas
- apply the income
- find, submit, view, and generate an international request report (New Zealand only)
On this page:
Determine a parent's residency and income period
Gather the most accurate information
Document decision, amend the assessment and notify the customers
Submit an international request report
Find, view, and generate an international request report
Determine a parent's residency and income period
Table 1
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Determine parent's residencyThe residency status of a parent will affect what income information is used in the child support assessment. When calculating adjusted taxable income (ATI) for parents living overseas, different rules apply about what information to use and how to obtain it depending on the parent's residency. A residency determination is needed before determining a parent's adjusted taxable income. Make sure the residency of the parent has been considered and decided. If there is a previous residency determination, check if the parent's residency status had changed:
For more details, see Residency decisions for Child Support customers. | |
Determine income periodChild Support may need to determine an income for a parent when making an assessment at the start of a new child support period. All assessments use the Last Relevant Year of Income (LRYI) to determine a parent's adjusted taxable income for a child support period. However, the income period of the LYRI may differ depending on the customer's residence status at the start of the child support period. Note: the receipt of a new overseas taxable income does not trigger a new child support period. The References page has a link to information about when child support periods start. Where a new overseas taxable income is received and a new Child Support Period is not required, load the income with a recorded status. This makes information available in the future if/when a new child support period is created. If the parent is a resident of:
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Parent currently resident of AustraliaIf the parent was a resident overseas for a time but is a resident of Australia at the start of a new child support period, the income period for the LRYI is the last completed Australian financial year. Child Support will determine the parent's adjusted taxable income using all income earned or derived, both overseas and in Australia, during that income period. Example Jo lived in New Zealand up until January 2025. Jo relocated to Australia in February 2025. A new child support period is due to start on 2 July 2025. Because Jo currently lives in Australia, Child Support will determine Jo's income using the Australian financial year 1 July 2024 to 30 June 2025 as the income period. See Table 2. | |
Parent resident of a reciprocating jurisdictionIf a parent is a resident of a reciprocating jurisdiction at the start of a new child support period, the income period for the LYRI is the last completed financial year for the country in which the parent is resident. Child Support will determine the parent's adjusted taxable income using all income earned or derived, both overseas and in Australia during that income period. Example 1 Jane is a resident of New Zealand. A new child support period is due to start on 1 May 2025. Because the New Zealand financial year runs from 1 April to 31 March, Child Support will request details of all income earned in Australia and overseas for the income period 1 April 2024 to 31 March 2025. Example 2 Jim left Australia in March 2025 and is now a resident of England. A new child support period is due to start on 7 September 2025. English financial year runs from 6 April to 5 April and because Jim is currently a resident of the England, Child Support ask Jim to supply details of all income earned in Australia and overseas for the income period 6 April 2024 to 5 April 2025. Is the parent a resident of New Zealand?
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Parent resident of a non-reciprocating jurisdictionIf the parent is a resident of a non-reciprocating jurisdiction at the start of a new child support period, the income period for the last relevant year of income is the last completed Australian financial year. Example Jake is a resident of a non-reciprocating jurisdiction. Jake claims child support for children who are citizens of Australia (and eligible children). A new child support period is due to start on 6 November 2025. Child Support will determine Jake's income according to the domestic income rules, using the Australian financial year 1 July 2024 to 30 June 2025. Any income that Jake earned during this income period may be included as either Australian taxable income (if it was earned in Australia and is taxable income) or as target foreign income (if it was earned outside Australia). Note: This only relates to payees where the claimed for children of the case are still eligible. References has a link to information about circumstances where:
See Table 2. | |
New Zealand Incomes and child support periodsMost child support periods (CS Periods) generate automatically, however in some instances Cuba is unable to create a new CS Period and they need to be created manually. Where the payer is in New Zealand, a manual creation of a new CS Period is required:
A CSP Expiry or New Income intray will be generated, and the payer’s income needs to be updated before a new CS Period can be started. Is the payer’s New Zealand income already determined and keyed as recorded in Cuba?
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Determine income type
Table 2
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Determine income typesDifferent income types are used to calculate adjusted taxable income depending on a parent's residency status. Has the parent's residency status changed during the last relevant year of income?
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Change of residence during the last relevant year of incomeIf a parent's residency status changes during the last relevant year of income, a combination of different types of income may be needed. If a parent was a resident overseas for part of the relevant income period but is now resident of Australia at the start of a child support period, use the person's Australian taxable income and add any overseas income earned during the Australian financial year. If a parent was residing in Australia but is a resident of a reciprocating jurisdiction at the start of a child support period, use their overseas income and add any Australian income earned during the financial year that most recently ended in the country where the customer now resides. If the parent was residing in Australia but is a resident of a non-reciprocating jurisdiction at the start of a child support period, record any overseas income earned as Target Foreign Income and add any Australian taxable income earned during the Australian financial year. Example Lauren moved to Germany in August 2024. The new child support period starts in March 2025. As Lauren is a resident of Germany when the child support period starts, the income period Child Support will use will be the most recently ended German financial year (01 January 2024 to 31 December 2024). Lauren lived in Australia for part of this period (January 2024 to July 2024). Child Support will combine Lauren's Australian income for that period and the German income for the period August 2024 to December 2024 to give an overall income figure for use in Lauren's assessment. If the parent is a resident of:
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Parent resident of AustraliaWhere a parent is a resident of Australia and they have earned or derived income from an overseas jurisdiction, this may be recorded as Target Foreign Income. Target Foreign Income is included in the adjusted taxable income used in their assessment. Note: if a person earns income from overseas, and they are an Australian resident for taxation purposes, they may be required to declare this income to the ATO. The ATO may make a decision that amounts of income earned overseas do not need to be included in their taxable income. However, even if the overseas income is legitimately exempt from the person's tax return, it can still be used as part of the income used in their child support assessment if it meets the definition of Target Foreign Income. This can include income earned in a non-reciprocating jurisdiction as long as it fits with the definition of Target Foreign Income. See Table 3. | |
Parent resident of a reciprocating jurisdictionIf a parent is a resident of a reciprocating jurisdiction, their income for child support purposes includes their overseas income. If the person earned income in Australia during the relevant period, the overseas income will be added to the parent's Australian income. Is the parent a resident of New Zealand?
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Parent resident of New Zealand (Paying Parent)When a payer resides in New Zealand, their income needs be updated when either of the following intrays generate:
Income information for payers located in New Zealand is sourced from Inland Revenue, New Zealand (NZIR). NZIR give the incomes mid-August and a NZ Out New Income intray is created. The income information is recorded in the intray notepad. Is there an NZ Out New Income intray? | |
Parent resident of a non-reciprocating jurisdictionA payee may be a resident of a non-reciprocating jurisdiction but still be eligible for a child support assessment if the child(ren) of the case are residents or citizens of Australia and the payer is an Australian resident. Where a parent is a resident of a non-reciprocating jurisdiction, Child Support will include any income earned or derived overseas when calculating their income. This income will be recorded in Cuba as Target Foreign Income. Note: where eligible ‘claimed for’ child(ren) change care from a parent/carer in a non-reciprocating jurisdiction to the parent/carer in Australia, See Table 5 > Step 6 in Complex system processing for reverse child support cases. Has a parent's residency status changed during the child support period?
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Gather the most accurate information
Table 3
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Gather informationWhen making a new assessment for child support it is essential to obtain the most accurate income information possible from both customers. The best possible income information available should be used. The priority of incomes to use in assessments is the same for both domestic and international parents. See Income processing for Child Support customers. For Estimates income hierarchy, see Child support estimates, Child support estimates review (post 1 July 2010) and Child support estimates - Reconcile (pre 1 July 2011). If using a provisional income, Service Officers must be satisfied that this income is the most appropriate income available. Conduct preliminary searches to gather information that may assist the customer to provide accurate income details when contacted:
Attempt to contact the parent by telephone to obtain a verbal income declaration. For international telephone calls, see Contact with Child Support customers. Was contact with the customer successful?
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Income declaration taken by phoneUse the Income declaration macro to record the parent's income details. Explain to the customer that an income declaration is a formal declaration of their income for the Last Relevant Year of Income (LRYI) and should include all sources of income, regardless of where it was earned. Income amounts are to be provided in the currency it was earned. If any income has been earned in Australia in the LRYI, these amounts must also be included. The Service Officer must be satisfied that the income details given by the parent are a reasonable approximation of their last relevant year of income. This assessment will be made on a case by case basis. Example Child Support are currently using an income of 2/3 MTAWE to calculate Joseph's child support. Joseph contacts Child Support and advises that his income for the LRYI was £50,000. This amount is supported by detailed verbal information given about Joseph’s earnings, deductions, employment type and hours worked. Based on Joseph's income history, employment circumstances and the income information supplied, the Service Officer is satisfied that £50,000 is Joseph's income for the LRYI. If the Service Officer is not satisfied that the income declaration is a reasonable approximation of income, written evidence must be requested from the parent. The type of evidence that can be required will vary from case to case, but may include:
The Income Declaration - Overseas Income (IDF) form gives guidance around what information Child Support should request. Note: some countries, for example the USA, allow couples to lodge joint tax returns. Child Support is not necessarily limited to apportioning 50% of the return as evidence of income. The following steps will assist in determining a joint tax return apportionment:
Apportionment may be possible using historical information. That is if the income was a 70/30 split in previous years it may be considered reasonable for this to apply. In the absence of any information other than the joint tax return a 50/50 split may be considered the most appropriate apportionment. If Service Officers are not satisfied that the income given by the customer is accurate, it is not appropriate to use that income to assess child support. This may be the case if the Service Officer locates other income the customer is unwilling to include in their declaration of income or cannot explain. Has contact been established with the parent?
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Request information in writing - s162A(1) Notice to Parent residing in a Reciprocating JurisdictionAn s162A(1) notice requesting income information can only be sent if the parent resides in a reciprocating jurisdiction. If an income is being sought for a payer, check to see if Cuba has automatically issued a section 162A(1) notice and the Income Declaration - Income earned outside Australia form for the relevant period - if automatic generation has not happened, it will need to be done so manually. Automatic generation by Cuba occurs when all the following conditions exist:
Cuba does not automatically issue a section 162(A)(1) notice and Income Declaration - Income earned outside Australia form to payees - they need to be issued manually. If Cuba has automatically generated a notice, see Table 4. Manual s162A(1) notice If an income is being sought for a payee or a notice has not been automatically generated for a payer or the Service Officer has located updated address information for the payer allowing them to send one for the first time, manually issue a UQ42.00 - Request for overseas income letter to the parent. Print the letter locally and make sure an Income Declaration - Income earned outside Australia form is included. If there is no valid address for the parent, go to Step 4. | |
Request information in writing - s162A(1) Notice to Central AuthorityIf Child Support does not have a valid address for the parent and the parent is a resident of a reciprocating jurisdiction, other than those mentioned below, see Table 4 > Step 3. Note: income information provided by overseas authorities cannot be considered to have been provided by the parent, when determining the date of effect. For more information on backdating an overseas income, see Table 5 > Step 5. Select the country the parent is residing in: Residents of New ZealandFor a resident of New Zealand, overseas income information can be requested under the service agreement between Child Support and the Inland Revenue, New Zealand (NZIR). This request can be completed via an international request report in Cuba . For assistance, see Table 7. Note: if a current New Zealand income is required between 1 April and 31 May, do not submit an International Request to NZIR for an income, as NZIR are not able to give the income until after May of that year. Once a response is received, the Service Officer will be notified by email of the income request. To access the international request report, go to Table 8 If the income information cannot be obtained from NZIR or if the income is needed between 1 April and 31 May, a UQ42.00 Request for Overseas Income letter should be issued to the customer's address, if known, allowing 28 days plus postage time for a response. There is no need to wait for the nominated response time to expire before generating the new assessment. Once the notice has been issued, go to Step 5. Residents of USA and Canada (all territories/provinces except Yukon and Quebec)If the case has been transmitted to the USA or Canada and Child Support does not have a valid address for the parent, issue a non-DMC UQ42.01 - Request for customer's overseas income from CA letter, requesting a response within 28 days. See the Central Authority Address Listing for details. Note: requests for overseas income cannot be sent to the USA or Canada pre-transmittal. Residents of Sweden and NorwayIf Child Support does not have a valid address for the parent but the parent is a resident of Sweden, issue a non-DMC UQ42.01 - Request for customer's overseas income from CA letter, requesting a response within 28 days. See the Central Authority Address Listing for details. | |
Excluded 'post-separation' income for overseas parentsAn overseas income can be reduced to exclude 'post separation income' in the same way an Australian income can be for a domestic case. This may be an appropriate option to discuss with the parent. Does the customer want to exclude post separation income? | |
Estimating incomeA parent living overseas can lodge an estimate in the same way as a parent with a domestic case can. This may be an appropriate option to discuss with the parent. For estimate validity rules, the minimum details required, and the process for accepting and processing applications to estimate income, see Child Support estimates. Does the customer want to lodge an estimate?
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Applications for the fixed annual rate (FAR) not to applyA parent living overseas can lodge an application for the FAR not to apply in the same way as a parent with a domestic case can. This may be an appropriate option to discuss with the parent. Note: when converting current foreign income for the purpose of an application for a FAR not to apply, use the same exchange rate as was used to convert the original income. Does the customer want FAR not to apply?
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Calculate provisional incomes
Table 4
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Provisional incomesIf an OS taxable income is not recorded for a resident of a reciprocating jurisdiction for the LRYI, then a provisional income will be applied. The priority of how incomes will be applied is:
If a provisional income is recorded for a customer, attempt to locate a better income including:
For more details, see Income processing for Child Support customers. In any circumstances where Child Support intends to use a provisional income for a parent who is a resident of a reciprocating jurisdiction, an s162A(1) notice must first be issued where a valid address exists for the parent and/or where there is a Central Authority from whom Child Support can reasonably request income information, that is, New Zealand, USA, Canada (excluding Yukon and Quebec), Sweden or Norway. Child Support will only update a provisional income with another provisional income if:
If unable to obtain income information for a parent who resides in a reciprocating jurisdiction and an s162A(1) notice in respect of that parent is not able to be issued, if no other provisional income is appropriate, go to Step 2. Otherwise, go to Step 3. | |
Apply a zero incomeChild Support will place the parent on a zero income if:
Note: Service Officers can issue a non-DMC UQ42.01 - Request for customer's overseas income from CA letter to USA, Canada (excluding Yukon and Quebec), Sweden and Norway and can obtain information from New Zealand through the hook-up spreadsheet. If the parent is resident in any other reciprocating jurisdiction Service Officers are unable to issue a section 162A(1) notice to the relevant central authority. Generally, Child Support will assume that a person who has not been a resident of Australia for any part of the most recently ended Australian financial year is not required to lodge an Australian tax return for that year. Before determining a parent is untraceable, Service Officers must:
A zero income will be loaded into Cuba as a DEFAULT income as there is currently no better option to use in Cuba. However, the zero income is not a default income and should not be referred to as such. Child Support are legislatively unable to apply a default income of less than 2/3 MTAWE. For a resident of a reciprocating jurisdiction the Child Support (Assessment) Act 1989 requires that a section 162A(1) notice be issued before a default income is applied. In circumstances where Child Support cannot issue an s162A(1) notice to the parent or the Central Authority, Child Support are therefore legislatively unable to determine any income amount for the parent. If the parent can be located and better income information is found at a later time, update the parent's income as appropriate. | |
Calculating a provisional incomeIt may be appropriate to determine a provisional income of an amount other than 2/3 MTAWE if a response to a Request for Overseas Income letter has not been received and:
Note: if Child Support is using a Default income, they cannot use an income less than 2/3 MTAWE if calculating an overseas income. This is always the case, even if they consider that a parent’s income is likely to be less than 2/3 MTAWE because, for example, Child Support is aware the parent lives in a developing country. |
Load income information
Table 5: this table describes how to load income information.
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Load income informationAny decision causing an overpayment must be confirmed with a Service Support Officer (SSO) before actioning. All reasons for the income update or replacement must be documented and supported with reliable income evidence. Is the parent a resident of a reciprocating jurisdiction?
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Convert income amounts into Australian dollarsIn order to load an overseas income amount, convert the figure/s from the overseas currency into Australian dollars (AUD). Use the International Income Converter to convert income derived where available. This tool will assist in converting the income from an overseas currency to Australian dollars, identifying, and loading the correct Australian tax year for the income and documenting the decision. If the currency or the year to be converted is not available on the International Income Converter, convert the income manually using the average exchange rate of the financial year in which the money was earned or derived. Income amounts are entered as whole numbers. Once the income is converted, round to the nearest dollar. To get the required exchange rate, email the International Disbursements Team. Note: where a parent has an income in multiple currencies, once converted into AUD, add together with any income earned in Australia during the income period to calculate the parents total income. Example While in New Zealand Jane earned $34,000.00 in the 2022/2023 New Zealand financial year. The average exchange rate for that period was 0.9111. The calculation will be as follows: 0.9111 x NZ$34,000.00 = AU$30,997.00 (rounded). Does the parents income include a Target Foreign Income amount?
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Converting Target Foreign IncomeThe conversion rules for target foreign income are different to those used to convert overseas incomes for residents of reciprocating jurisdictions. Convert the income manually using the exchange rate available on July 1 of the relevant Australian financial year in which the money was earned or derived and round off to the nearest whole dollar. To get the required exchange rate, email the International Disbursements Team. | |
Converting the Last Relevant Year of Income (LRYI)Where the most recently ended overseas financial year is the same as the Australian LRYI for the child support period (even if the financial year dates do not exactly align), Child Support can simply record the converted overseas income amount in Australian dollars as an OS Taxable for the same LRYI as would be normally used. Example 1 Jack who lives in England has a new child support period starting on 7 September 2024. Jack gives Child Support income details for the English 2023/2024 financial year (6 April 2023 to 5 April 2024), stating that GBP20,000 was earnt. The average exchange rate for the England in the 23/24 English financial year was 1.9102. Therefore, the calculation is 20,000 x 1.9102 = AUD$38,204.00 (rounded). As the parent is a resident of England and the child support period starts on 7 September 2008, the LRYI is the English financial year for 2023/2024 This is aligned with most recently ended financial year for Cuba purposes. Therefore, the income is recorded in Cuba as an OS Taxable Income of $38204 for 2023/2024. Where the most recently ended overseas financial year is not the same as the Australian LRYI, Child Support must record the overseas income details as an OS Taxable for the Australian LRYI, even though they are different. Example 2 Jess who lives in New Zealand has a new child support period starting on 1 May 2024. Inland Revenue, New Zealand has advised Child Support that Jess's taxable income for the 2023/2024 New Zealand financial year was NZ$54,000.00. The New Zealand financial year runs from 1 April 2023 to 31 March 2024. The average exchange rate for New Zealand for their 23/24 financial year was 0.9269. The conversion calculation is therefore 54,000 x 0.9269 = AUD$50,052.00 (rounded). As the parent is a resident of New Zealand when the income for the assessment is being calculated, and because the child support period starts on 1 May 2024, the most recently ended New Zealand financial year is the 2023/2024. This is not the same as what the Australian LRYI for this child support period would have been (2022/2023). Therefore, this amount is applied to Cuba as an OS Taxable of $50,052 (rounded) for the 2022/2023 financial year to enable Cuba to use it to calculate the assessment. | |
Backdating an overseas incomeIf a parent does not provide their income when a child support assessment is created, a provisional income will be used. If the parent later gives evidence that their actual income was lower than the provisional income, this will apply prospectively, unless prescribed circumstances apply. Note: prescribed circumstances under Section 11(2) of the Regulations only apply when the income is provided by the parent. Income information provided by third parties, including overseas authorities, cannot be considered to have been provided by the parent. Prescribed Circumstances Prescribed under Section 11(2), a parent who resided overseas during the last relevant year of income can request their ATI be applied from the start of the child support period if at the time the assessment was made:
Reasonable time Where income information is needed, Child Support will request information from a parent under s162A(1) via a UQ42.00 Request for Overseas Income letter. Child Support will consider the parent has provided information within a reasonable time if they respond within 12 months. If the response is received after 12 months, give consideration as to whether there are any special circumstances for the delay. The following will help with selecting the correct date to enter new international income information. If the supplied income is:
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Loading an OS TAX INCOME into CubaSubstantiated income information supplied by a customer who is overseas must be recorded as an OS TAX INCOME in Cuba not as an income declaration. Note: an OS TAX INCOME loaded into Cuba will override a TAXABLE INCOME, even when that TAXABLE INCOME was supplied by the ATO. If there is a TAXABLE INCOME, or a CLNK – NON TAX recorded, confirm if any amounts paid during the income period should be included in the OS TAX INCOME. See Income Cuba process help, Record overseas (OS) income for further information on loading and backdating an overseas income. Where a new overseas taxable income is received and no trigger for a new child support period, load the income with a recorded status. This makes information available in the future if/when a new child support period is created. If an OS Estimate is required, go to Step 7. Otherwise, see Table 6. | |
Loading an OS ESTIMATEIf Child Support has used an OS taxable income for the last relevant year of income to calculate child support, the customer is able to lodge an estimate of income. For overseas parents this will be loaded into Cuba as an OS ESTIMATE. The eligibility criteria for lodging an overseas estimate are the same as for domestic parents, however there are 2 additional steps:
Note: international parents are asked to supply evidence because Child Support cannot as easily perform a reconciliation of the parent's actual income with their estimate. Supplying evidence is not a legislative requirement and is not by itself a reason to refuse the estimate - however, if the parent has not supplied evidence, Child Support may refuse the estimate because they are not satisfied the parent will not earn more than the amount they estimated. Estimates must be approved by a Service Officer (SO4). |
Document decision, amend the assessment and notify the customers
Table 6
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Document decisionIf not proceeding with a new income, document in the relevant income notepad all:
If proceeding with a new income, load the income in Cuba. Document in the notepad attached to the income loaded any:
For documenting information, see Documenting Child Support information Is a new CS Period required?
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Amend assessmentOnce the new income has been manually loaded, run eligibility. Based on the priority of incomes, Cuba will automatically determine the best income in any child support period where the income record has been varied (by adding a new income or updating or cancelling an existing income). | |
Notify customersThe system automatically generates letters advising of an income change:
Any variation resulting in increased arrears, overpayments or changes to employer withholding deductions will incorporate the appropriate paragraphs alerting parents to the change. It may be appropriate to contact the parents by phone to discuss the consequences of an income change including:
Document all discussions and any follow up actions for finalisation. If the case has been transmitted to:
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Submit an international request report
Table 7: this table explains how to select and enter details in the International Details Request dialogue box in order to submit an International request report for Tracing, Income and to send an Updated Liability Amount. This process is for New Zealand only.
This process can be used to submit a request for a particular transaction to be included in a corresponding report which will be generated on the International Request Report window.
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Start point - Submit an international request reportStart point: Individual Customer Details window | |
Initiate a new request recordSelect the International Request push button on the Individual Customer Details window. This opens the International Details Request dialogue box. Note: only one request is able to be submitted at any one time. | |
Determine the type of request requiredTo submit a request for:
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Submit a request for tracingTo submit a request for tracing:
Cuba will display a warning message if a financial year is selected for which a customer has overseas taxable income recorded, click the Ok button to close this alert dialogue box. To cancel a request, select the Cancel button. The Individual Customer Details window will reopen. Select Ok to submit a request. It will then return to the Individual Customer Details window. Cuba will display a warning message if a tracing request has been submitted in the last four months and there is no ‘invalid’ address. Select Ok to close the alert dialogue box. The details entered into the International Details Request dialogue box will not be saved. The Individual Customer Details window will reopen. | |
Submit a request for incomeTo submit a request for income:
A warning message will display if a financial year is selected for which a customer has overseas taxable income recorded, select Ok to close this alert dialogue box. To cancel the request, select the Cancel button. The Individual Customer Details window will display. Select Ok to submit this request. The Individual Customer Details window will then display. Cuba will display a warning message if:
Select Ok to close the alert dialogue box. The details entered into the International Details Request dialogue box will not save. The Individual Customer Details window will display. Cuba will display an Error Detail "Case client role and/or Case not found for Individual Client” if:
If the Error Detail occurs, select Ok to submit the income request via the Inc Requests to NZ spreadsheet found in the NZ folder. |
Find, view, and generate an international request report
Table 8: this table describes how to find, view and generate an international request report that has been requested between a certain period. This process is for New Zealand only.
