Derived income for Child Support customers 277-07010020

A derived income is when Child Support determines a customer's likely Adjusted Taxable Income (ATI) for the last relevant year of income from information available to, or held by Child Support for that year. A derived income is either:

• a customer derived income
• an income manually calculated by Child Support, or
• an income automatically calculated by Cuba based on Centrelink (CLK) or Department of Veterans' Affairs (DVA) information

A derived income, Return not Necessary (RNN) deemed income, deemed and default incomes are also known as a provisional income.

Note: an existing provisional income cannot be replaced by another provisional income for the same amount, even if the new provisional income is of a different type. The only exception is where a customer derived income is recorded for the same amount as the existing provisional income in order to allow lodgement of an estimate.

A customer derived income, previously called an income tax declaration (ITD), is a derived income.

This is a customer's declaration of their adjusted taxable income for a relevant year. It is also considered a derived income based on information provided by the customer. A customer derived income can only be accepted if Child Support is satisfied that it is a reasonable approximation of the customer's adjusted taxable income (ATI). For more information the References page contains a link to the Child Support Guide 2.4.4: Child support income.

Incomes for child support periods that start:

• before 1 July 2008, if only partial income information is available, that is less than 10 months, the income is determined by complementing it with a pro-rata median income
• from 1 July 2008 to 30 June 2011, a derived income can be determined when Child Support has information (from a source other than the customer or their tax return) about the income a customer has received for at least 10 months in the last relevant year of income. This is used to determine the customer's adjusted taxable income for that financial year
• from 1 July 2011, less than 10 months income can be used to determine a derived income in some circumstances

When a new assessment is generated, Cuba has been programed to automatically derive an income for the last relevant year of income if, at least 10 months of pension or benefit income information is available. This information is received from Centrelink (CLK) or the Department of Veterans' Affairs (DVA) and can be viewed in the customers Income Details window. Centrelink/DVA income information sourced from Centrelink or Client Identification Compliance (CIDC) can be viewed in the External Information window.