Bateson and McDonald (Child support)

The Administrative Appeals Tribunal (AAT) considered the child support obligations of the liable parent, Mr Bateson, in relation to his child with Ms McDonald. The dispute concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth), seeking to vary the assessed annual rate of child support payable by Mr Bateson. The core of the disagreement lay in the valuation of Mr Bateson's business income and earning capacity.

The Tribunal was required to determine whether the criteria for a departure from the child support assessment were met, specifically focusing on whether Mr Bateson's actual income, property, financial resources, and earning capacity were significantly different from those used in the assessment. A key question was whether a transaction involving the transfer of ownership of a business was conducted at arm's length, and if not, whether this indicated a deliberate reduction in his assessed income or earning capacity.

The Tribunal found that Mr Bateson's earning capacity was significantly higher than that reflected in the child support assessment. It reasoned that the transaction to transfer ownership of his business was not at arm's length, and that this, along with other evidence regarding his financial resources and continued involvement in the business, demonstrated a deliberate attempt to reduce his child support liability. Consequently, the Tribunal concluded that the grounds for a departure determination were established.

The Tribunal set aside the original decision and substituted its own, varying the annual rate of child support payable by Mr Bateson.