According to the Australian Taxation Office, the “adjusted taxable income” refers to the total of the following amounts:

• taxable income
• adjusted fringe benefits
• tax-free pensions or benefits
• income from overseas not reported in your tax return
• reportable super contributions
• total net investment loss for financial investments and rental properties.

Child support payment made are deducted from the above amounts to calculate the adjusted taxable income

For every $4 that the dependent’s adjusted taxable income surpasses $282, the dependant (invalid and carer) tax offset (DICTO) is decreased by $1.