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_Mariee(Newbie)Newbie
13 Aug 2021

Hi, trying to understand the purpose (advantages and/or disadvantanges if any) of Question IT7 of individual Tax Returns. This question appears to confuse many people and hopefully this will assist to clarify some confusion for others. It would be appreciated if some detailed information regarding same was provided. Below is the query and thank you in advance for your assistance.

If one party has been paying the yearly assessed Child Support amount to the other party, whether via private or auto debit services (managed by Child Support), does Question IT7 require the total yearly assessed amount paid entered. If so, what is the purpose for the question and entering the amount?

If the amount does not have any impact on the tax return what/where is the information used for? ( ie: child support assessment / medicare levi / medicare surcharge / other?)

Thank you

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1,393 views
3 replies

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Most helpful replyATO Certified Response

_KaraBATO(Community Support)Community Support
ATO Certified Response16 Aug 2021

Hello @Mariee,

Good question!

I can break this down for you.

The income tests are used to calculate someone adjustable taxable income (ATI).

The ATI is used to assess someone's:

    • eligibility for certain offsets and deductions,
    • Medicare surcharge threshold,
    • Student support loan repayments,
    • Government super co-contribution amount, and
    • private health insurance liability

    The department of human services also use it to determines someone's entitlement to FTB part A and B.

    For income test purposes, the amounts reported at IT7 Child support you paid are deducted from the total of the other amounts that make up your ATI.

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    Most helpful replyATO Certified Response

    _KaraBATO(Community Support)Community Support
    ATO Certified Response16 Aug 2021

    Hello @Mariee,

    Good question!

    I can break this down for you.

    The income tests are used to calculate someone adjustable taxable income (ATI).

    The ATI is used to assess someone's:

      • eligibility for certain offsets and deductions,
      • Medicare surcharge threshold,
      • Student support loan repayments,
      • Government super co-contribution amount, and
      • private health insurance liability

      The department of human services also use it to determines someone's entitlement to FTB part A and B.

      For income test purposes, the amounts reported at IT7 Child support you paid are deducted from the total of the other amounts that make up your ATI.

      Liked by _Dan_ATO
      _Mariee(Newbie)Newbie
      19 Aug 2021

      Thank you very much for your response Kara.

      So, just to confirm:

      If there has been Child Support and/or Eligible expenses paid to the other party (for a respective Financial Year), you are required to insert the amount paid in the IT7 question OR is it a choice whether to insert the amount ?

      Thank you in advance for your response

      Mariee

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