Property settlements

The cash proceeds from a property settlement are not considered taxable income in Australia by the tax department.

However, the CSA rewrites the law in its regulations. The proceeds are considered taxable income by CSA.

from the buzz:

Trust me. At the present time. Cash proceeds from sale of any
property of a marriage, even though it may have been your primary
residence, are used to assess you CSA liability.
It's gone past a joke.
I suspect a lot - like me - didn't know this.
I am having to get a lawyer to complete a change of assessment application.
They knocked me back last time when I did it.
I spoke with one of their assessment team and she said. 'I can't see that anything
has changed'. I don't understand how it works but best I can
fathom it is that they are taking the whole amount and assessing
it at an investment rate of 5% p.a. Best part is I have spent the
money. I now can understand why non custodial parents lose heart.

It is also interesting that a new CSA law will be effective in
2008. What's wrong with now? My mind just boggles. I think this
is just a carrot the present Gov't is dangling hoping to catch
and keep votes.
But that's my opinion. Cheers.

At least they'll have the lawyers votes...

The ruling is sexist and discriminatory since it only applies to men. If man gives his ex wife a generous property settlement, it counts for nothing when calculating child support.

No matter what legalistic rationales are made here, that is simply unjust, sexist, and discriminatory. The Australian CSA is a rogue agency that considers itself above the written law of the land, -- and superior to good judgment, moral and ethical restrictions.