Is Child Support Taxable Income in Australia?

Child Support and Tax: The Rules

The Australian Taxation Office (ATO) treats child support differently from other income and expenses:

No, you don't declare child support on your tax return. Here's what you need to know:

Do I Declare Child Support on My Tax Return?

If you owe child support arrears, the ATO can intercept your tax refund and redirect it to Services Australia. This is called tax refund garnishment.

This happens automatically. You can't stop it if you owe child support arrears. Learn more about router.push('/blog/child-support-arrears-australia')} > child support arrears

How Child Support Affects Your Tax Refund

While child support isn't taxable, it can reduce your Family Tax Benefit (FTB) Part A through the maintenance income test.

If you receive child support, it's treated as "maintenance income" for FTB purposes:

How Child Support Affects Centrelink Payments

Use our router.push('/ftb-calculator')} > FTB calculator

If you're self-employed or run a business, child support is still not tax deductible. However, your business income affects your child support assessment.

Child Support and Business Tax

While child support itself isn't reported on your tax return, you must report certain information to Services Australia:

Common Tax Misconceptions

What You Need to Report

Frequently Asked Questions