Arnold and Waghorn (Child support)

This matter concerned an appeal by the father, Mr Arnold, against a decision of the Child Support Registrar concerning the assessment of child support payable to the mother, Ms Waghorn. The dispute centred on whether the father's income, derived from his employment as a director of a company, should be assessed at a higher amount than his declared taxable income, pursuant to section 106 of the *Child Support (Registration and Collection) Act 1988* (Cth). The father argued that his income should be assessed based on his actual taxable income, while the mother contended that the Registrar had correctly determined that the father had intentionally reduced his taxable income to avoid child support obligations.

The primary legal issue before the court was whether the Registrar had erred in finding that the father had intentionally deprived himself of income for the purpose of reducing his child support liability. This required the court to consider the application of section 106 of the Act, which allows for the assessment of a parent's child support income at an amount greater than their taxable income if the Registrar is satisfied that the parent has intentionally deprived themselves of income. The court had to determine if the evidence supported the Registrar's conclusion that the father's actions, specifically his remuneration structure as a director, amounted to such a deprivation.

Deputy J Walsh P found that the Registrar had correctly applied the provisions of section 106. The court reasoned that the father, as a director, had control over his remuneration and had structured his income in a way that resulted in a lower taxable income than could reasonably be expected from his position and the company's profitability. The evidence indicated that the father had chosen to receive a lower salary and instead take dividends, which were not fully assessable under the child support legislation in the same way as salary. The court affirmed the principle that intentional deprivation of income for the purpose of reducing child support obligations is a matter for the Registrar to determine based on the available evidence, and that the Registrar's findings were supported by the facts presented.

The appeal was dismissed, and the child support assessment as determined by the Registrar was upheld.