40Formula 6: Method statement using income of one parent where other parent deceased

40 Formula 6: Method statement using income of one parent where other parent deceased

This is how to work out the annual rate of child support payable for a child for a day in a child support period if a non‑parent carer of the child has applied for a parent of the child to be assessed in respect of the costs of the child because of subparagraph 25A(b)(iv) (deceased parent).

Method statement

Step 1. Work out the parent’s child support income for the day (see section 41).

Step 2. Work out the parent’s percentage of care for the child for the day (see section 48).

Step 3. Work out the parent’s cost percentage for the child for the day (see section 55C).

Step 4. Work out the costs of the child for the day (see sections 55G and 55H).

Step 5. Work out the following rate:

Image unavailable in extracted text

Step 6. If the parent is not assessed in respect of the costs of another child who is in another child support case, the annual rate of child support payable by the parent for the child for the day is the rate worked out under step 5.

Step 7. If the parent is assessed in respect of the costs of another child who is in another child support case, work out the parent’s multi‑case cap for the child for the day (see section 55E).

Step 8. The annual rate of child support payable by the parent for the child for the day is the lower of:

(a) the rate worked out under step 5; and

(b) the parent’s multi‑case cap for the child for the day.

Step 9. If there is only one non‑parent carer who has a percentage of care for the child for the day, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carer. If there are 2 non‑parent carers who have a percentage of care for the child for the day, then, subject to section 40B, the parent must pay the annual rate of child support that is payable for the child under step 5 or 8 to the non‑parent carers in accordance with section 40A.

Note: Under section 40B, a non‑parent carer of a child is not entitled to be paid child support unless he or she applies under section 25A in relation to the child.