Backus and Klahn (Child support)

This matter concerned an appeal by the liable parent, Mr Klahn, against a departure determination made by the Child Support Registrar. The Registrar had determined that the liable parent's child support assessment should be departed from, increasing the amount payable, on the basis of his income, property, and financial resources. The appeal was heard by the Federal Circuit and Family Court of Australia.

The primary legal issue before the court was whether the Registrar had erred in her decision to depart from the assessment. This required the court to consider whether the liable parent's actual financial circumstances, including his income, property, and financial resources, were such that the assessment did not make proper or adequate provision for the child's maintenance. The court also had to determine if the Registrar had correctly applied the relevant provisions of the *Child Support (Registration and Collection) Act 1988* (Cth) in reaching her conclusion.

The court reviewed the evidence presented regarding Mr Klahn's financial position. It considered the nature and extent of his income, the value of his assets, and any other financial resources available to him. The court applied the principles established in child support legislation and case law concerning departure from assessments, focusing on whether the liable parent had the capacity to pay more than the assessed amount and whether it was just and equitable to do so. The court found that the Registrar had not adequately considered all relevant factors and had made an error in her determination.

Consequently, the court set aside the Registrar's departure determination and substituted its own decision. The court ordered that the liable parent's child support assessment remain unchanged.