Backman and Starkey (Child support)

The Administrative Appeals Tribunal (AAT) considered the child support assessment for the liable parent, Mr. Backman, in a dispute with Ms. Starkey. The matter concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth), specifically challenging the assessment of Mr. Backman's income and financial resources derived from his self-employment.

The primary legal issue before the Tribunal was whether Mr. Backman's actual income and financial resources, as derived from his self-employment, differed significantly from the income assessed under the standard child support formula. This required the Tribunal to determine if the circumstances warranted a departure from the assessed amount, considering the benefits Mr. Backman derived from his business activities.

The Tribunal reviewed the evidence presented regarding Mr. Backman's income and expenses related to his self-employment. It applied the principles governing departure determinations, focusing on whether the assessed income accurately reflected his capacity to pay child support. The Tribunal found that the evidence supported a departure from the assessed amount, concluding that Mr. Backman's actual financial position was different from that which would be determined using the standard assessment provisions. Consequently, the Tribunal set aside the original decision and substituted its own determination.