Child Support & Tax – No-Fluff Guide
Is Child Support Taxable?
If you receive child support:
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It’s not taxable income
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Don’t include it in your tax return
If you pay child support:
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It’s not tax-deductible
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You can’t claim it as a deduction in your tax return
How Does Child Support Affect Tax & Benefits?
Family Tax Benefit (FTB):
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If you receive child support, it can reduce your FTB Part A
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Services Australia uses your child support details to adjust your benefits
Medicare Levy Surcharge (MLS):
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If you pay child support, your child is still your dependant for MLS
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This can increase your MLS income threshold (which might reduce your tax)
Other Income-Related Benefits:
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Child support you receive is not counted as income for most Centrelink payments
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Always check the specific rules for your benefit
What About Reporting?
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Receiving child support? Don’t include it in your tax return
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Paying child support? Don’t claim it as a deduction, but
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You may need to report it to Services Australia for FTB or other payments
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Derek’s FAQ – Real Questions, Real Fast
Q: I get child support from my ex. Do I pay tax on it?
A: Nope. It’s tax-free.
Q: Can I claim a tax deduction for the child support I pay?
A: No — it’s not deductible.
Q: Does paying child support help with the Medicare Levy Surcharge?
A: Yes — your child still counts as your dependant, which might increase your threshold.
Q: Do I need to tell the ATO about child support?
A: No — but Services Australia might need to know, depending on your benefits.
Bottom line:
Child support is tax-neutral — not taxable, not deductible. But it can affect your family payments and your Medicare Levy Surcharge threshold. Always keep records and check in with Services Australia if you’re unsure.
Let GoTax Keep It Simple
GoTax won’t ask about child support for tax purposes, because it’s not needed. But if you’re juggling child support, FTB, and MLS thresholds, our team can help make sense of the mess.
Start your return now: www.gotax.com.au/guest-user
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