Carey and Ridge (Child support)

This matter concerned an appeal to the Full Court of the Family Court of Australia regarding child support. The parties, Ms Carey and Mr Ridge, were in dispute over the assessment of child support payable by Mr Ridge to Ms Carey for their two children.

The primary legal issue before the Full Court was whether the Registrar's decision to depart from the standard child support assessment, pursuant to section 117 of the *Child Support (Registration and Collection) Act 1988* (Cth), was justified. Specifically, the court had to determine if Mr Ridge's earning capacity had been deliberately under-utilised or reduced, and if it was just and equitable to make a departure from the assessment based on his actual income.

The Full Court considered the evidence presented regarding Mr Ridge's employment history and his voluntary decision to reduce his working hours. It applied the principles established in cases concerning the deliberate reduction of income, emphasising that the onus was on the applicant (Ms Carey) to demonstrate that the respondent (Mr Ridge) had deliberately reduced his earning capacity. The court found that the Registrar had erred in law by failing to properly consider the evidence and the relevant legislative provisions, particularly in relation to the deliberate under-utilisation of earning capacity. The court also noted that the Registrar had not adequately considered the impact of the departure on both parties and the children.

The Full Court allowed the appeal, set aside the Registrar's decision, and remitted the matter back to the Registrar for redetermination in accordance with the Full Court's reasons.