Bisek and Bisek (Child support)

The Administrative Appeals Tribunal (AAT) considered an application by Mr Bisek for a departure determination regarding his child support liability to Ms Bisek. Mr Bisek sought to vary his child support assessment on the grounds that it was unjust and inequitable due to his income, property, and financial resources. The original administrative assessment required Mr Bisek to pay $16,824 annually, based on an adjusted taxable income of $89,654.

The tribunal was required to determine whether a ground existed to depart from the administrative assessment, whether it would be just and equitable to make a departure determination, and if so, whether it was otherwise proper to do so. Specifically, the tribunal had to consider if the circumstances were special, out of the ordinary, and peculiar to the case, such that applying the standard assessment would result in an unjust and inequitable outcome regarding the level of financial support. This involved assessing Mr Bisek's income, property, financial resources, and earning capacity, as well as Ms Bisek's circumstances and the needs of the children.

The tribunal found that a ground for departure was established. Mr Bisek had voluntarily ceased employment earning $70,000 per annum and subsequently accepted a position earning $65,000 per annum, which was a reduction in income. While Mr Bisek's income had fluctuated due to redundancy and a period of income support, the tribunal considered his current employment and income. The tribunal determined that applying the administrative assessment based on his previous higher income would be unjust and inequitable given his current financial situation. The tribunal also considered the factors outlined in subsection 117(4) of the Child Support (Assessment) Act 1989, including the needs of the children, the financial circumstances of both parents, and their respective commitments and earning capacities.

The tribunal varied the decision under review. For the period from 10 February 2020 to 30 June 2020, Mr Bisek's adjusted taxable income was varied to $61,708. From 1 July 2020 onwards, the child support liability was to be determined by the ordinary administrative assessment, reflecting his current income of $65,000 per annum.