Abella and Abella (Child support)

This matter concerned an application for review by Mr Abella of a decision by the Child Support Registrar regarding the administrative assessment of child support payable by him to Ms Abella for the period 15 September 2017 to 31 August 2018. The dispute centred on the adjusted taxable income used in the assessment, which was initially a provisional amount of $180,000, later updated to Mr Abella’s actual taxable income for the 2016-17 income year of $195,331, as advised by the Australian Taxation Office. The Administrative Appeals Tribunal (AAT) heard the application, with both Mr and Ms Abella participating.

The primary legal issue before the Tribunal was whether Mr Abella’s adjusted taxable income of $195,331 for the 2016-17 income year was correctly applied to the child support assessment for the period commencing 15 September 2017. This involved determining whether Mr Abella had made a valid election to estimate his income for the 2017-18 income year on 19 September 2017, as he contended, or if the provisional amount of $180,000, based on information provided by him for the 2016-17 income year, was correctly applied until his actual income for that year became known.

The Tribunal considered the provisions of the Child Support (Assessment) Act 1989, particularly sections 43, 5(1), and 58, which govern the calculation of adjusted taxable income using past income years. The Tribunal was not persuaded by Mr Abella’s evidence that he had made an estimate election on 19 September 2017, noting that the file note of the interaction referred to the 2016-17 income year, did not record an estimate election, and lacked the usual details sought for such an election. Consequently, the Tribunal found that the provisional income of $180,000 was correctly applied initially. Upon receiving Mr Abella’s actual 2016-17 taxable income of $195,331 from the ATO, section 58A of the Act mandated that this actual income be applied to the assessment.

The Tribunal affirmed the decision under review, concluding that Mr Abella’s adjusted taxable income of $195,331 was correctly applied to the child support assessment for the period 15 September 2017 to 31 August 2018.