Annan and Annan (Child support)

[2023] AATA 2664

Annan and Annan (Child support) [2023] AATA 2664 (3 July 2023)

DIVISION:Social Services & Child Support Division

REVIEW NUMBERS:  2023/MC025634 & 2023/MC025650

APPLICANT:  Mr Annan

OTHER PARTIES:  Child Support Registrar

Ms Annan

TRIBUNAL:Senior Member Dordevic

DECISION DATE:  3 July 2023

CATCHWORDS

CHILD SUPPORT – dismissal of application for review – particulars of the administrative assessment – no reasonable prospect of success – applications for review dismissed

Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been omitted from this decision and replaced with generic information so as not to identify involved individuals as required by subsections 16(2AB)-16(2AC) of the Child Support (Registration and Collection) Act 1988.

DISMISSAL OF APPLICATION FOR REVIEW:

1. The Tribunal is satisfied that the application for review has no reasonable prospect of success and dismisses the application for review pursuant to subsection 42B(1) of the Administrative Appeals Tribunal Act 1975 (AAT Act).

2. The reasons for this decision are set out in the following paragraphs.

3. Mr Annan lodged an applications for merits review with this Tribunal on 20 and 21 February 2023 regarding two objection decisions dated 18 October 2022 which disallowed his objections to:

   ·      to reconcile his 2022 income estimate of $16,268 (annualised) with the ATO assess adjusted taxable income of $75,365; and

   ·      replace his 2022 provisional income with his 2022 Australian Taxation Office assessed adjusted taxable $75,365 for the period 1 September 2022 to 6 October 2023.

4. An early case appraisal conference took place on 14 April 2023 with Ms Annan. The Tribunal was unable to contacted Mr Annan by telephone and left a voicemail for him to return the call.

5. On 14 April 2023 the Tribunal wrote to Mr Annan via his nominated email address stating:

   I was unable to contact you this morning to discuss your tribunal applications. I have outlined below some information for you to consider.

   You have asked the tribunal to review two decisions made by Child Support:

   ·       A decision to reconcile your 2021/22 adjusted taxable income (ATI) of $75,365 with your estimated income of $16,268 which had been used in the assessment for the period 1/7/21 – 30/6/22; and

   ·       A decision to use your 2021/22 ATI of $75,365 in the assessment from 1/9/22.

   Child Support assessments are initially based on each parent’s ATI for the last relevant year of income in relation to each child support period. In your case the child support periods are (relevantly);

   ·       1/8/20 – 31/8/21 using 2019/20 ATIs;

   ·       1/9/21 – 31/8/22 using 2020/21 ATIs; and

   ·       1/9/22 – 6/10/23 using 2021/22 ATIs.

   If a parent’s current adjusted taxable income is significantly less than what is being used in the assessment they can lodge an estimate of their current ATI. That will take effect from the date the parent makes the estimate of income (or the start of the financial year if the estimate is lodged before the start of the financial year). An estimate of income cannot take effect from a date earlier than the date it is made. The estimate of income will have effect until the end of that financial year.

   When Child Support is notified of the parent’s actual ATI for the years of income in which a parent has lodged an estimate of income, it needs to reconcile the parent’s actual ATI against their estimated ATI. If their actual ATI is higher than the estimated ATI, Child Support has to amend the assessments and use the parent’s actual ATI in the assessment for the estimate period.

   In your case, the assessments was based on an estimate of income for you of $21,557 for the period 29/9/20 – 30/6/21. The assessment would then have returned to be based on your 2019/20 ATI of $57,033 from 1/7/21.

   Child Support recorded that on 27/5/21 you made an estimate of income of $16,268 for the period 1/7/21 – 30/6/22. That ATI was then used in the assessment for you for that period. When Child Support was advised of your 2021/22 ATI of $75,365 it reconciled that income with your estimated income and made the decision to use an ATI of $75,365 for you in the assessment for the period 1/7/21 – 30/6/22. That is one of the decisions you have asked the tribunal to review.

   From 1/7/22 the assessment returned to being based on your 2020/21 ATI of $15,771. From 1/9/22, the assessment had to be based on your 2021/22 ATI of $75,365. That is the other decision you have asked the tribunal to review.

   On 25/10/22 you are recorded as making an estimate of income of $17,676 and that is used in the assessment for the period 25/10/22 – 30/6/23.

   The only circumstance in which either of the two decisions before the tribunal could be changed would be if the 2021/22 ATI of $75,365 used by Child Support was not the ATI issued for you by the ATO. There is no evidence that is the case. If you believe the ATO has incorrectly assessed your ATI you will need to ask the ATO to amend its assessment.

   If you do not believe you lodged an estimate of income for the 2021/22 year, you would need to object to that decision made by Child Support on 27/5/21 and seek an extension of time in which to object. Separate review rights would attach to any decision Child Support makes about such objection.

   If you think the assessments resulting from the above decision make the assessments unfair, you can make a change of assessment (COA) application with Child Support asking to have the assessments reviewed. Such a review could change the assessments for any period up to 18 months prior to the date you make the COA application. I have included a link here to information in the Child Support Guide about COA applications.
   2.6 Change of assessment in special circumstances | Child Support Guide (dss.gov.au)

   In summary, if the ATO has issued an assessment of your 2021/22 ATI as $75,365 then the decisions to use that ATI in the assessment for the period 1/7/21 – 30/6/22 and from 1/9/22 to 24/10/22 were correct.

6. On 23 May 2023 Mr Annan contacted the Tribunal and advised that he had received the above correspondence and wished to proceed with his applications.

7. On 26 May 2023 the Tribunal wrote to Mr Annan via his nominated email address.  The letter, in part, advised Mr Annan that the Tribunal is considering whether to dismiss the applications on the basis that the application has no reasonable prospect of success. Mr Annan was invited to provide within 21 days any evidence or written submission that he wished to have considered prior to the Tribunal reaching a decision.

8. No further evidence or submissions were provided by Mr Annan by close of business on 30 June 2023.

9. The Tribunal is satisfied the applications for review have no reasonable prospect of success as the legislation does not permit Mr Annan to receive a more favourable decision in respect of both applications before the Tribunal.

10. Thus, the Tribunal dismisses the applications pursuant to subsection 42B(1) of the AAT Act.