Chandrasekhar and Tudor (Child support)

The Administrative Appeals Tribunal (AAT) considered a child support matter involving Mr Chandrasekhar and Mrs Tudor, the parents of two children in Mrs Tudor's sole care. Mr Chandrasekhar applied for a change of assessment, arguing that his necessary self-support expenses significantly reduced his ability to pay child support, and that the income, property, and financial resources of either parent made the assessment unfair. The initial administrative assessment required Mr Chandrasekhar to pay approximately $14,614 to $14,714 annually, based on his estimated income of $81,264.

The Tribunal was required to determine if there were grounds to depart from the administrative assessment, specifically whether the application of the standard assessment provisions would result in an unjust and inequitable determination of child support due to the income, property, and financial resources of either parent. It also needed to consider whether such a departure would be just and equitable as regards the children and each parent, and if it was otherwise proper to make a departure determination. The Tribunal examined Mr Chandrasekhar's adjusted taxable income (ATI) and his high travel costs, as well as Mrs Tudor's income and her role in her husband's business.

The Tribunal found that Mr Chandrasekhar's adjusted taxable income of $143,144 was representative of his financial capacity, and that the initial assessment based on a lower income rendered the child support assessment unfair, thus establishing a ground for departure under subparagraph 117(2)(c)(ia) of the Act. Regarding Mrs Tudor's income, the Tribunal accepted her evidence regarding her administrative work and her ATI as assessed by the ATO, finding that even a higher assessment would not materially alter Mr Chandrasekhar's liability. The Tribunal also considered Mr Chandrasekhar's high travel costs, and with Mrs Tudor's non-opposition, was satisfied it would be just and equitable to increase his self-support amount by $11,000 per annum. The Tribunal concluded that a departure was proper as it reflected the parents' primary duty to maintain their children and would not unfairly impact community entitlements.

Consequently, the Tribunal set aside the decision under review and substituted its own decision. For the period from 16 July 2019 to 31 October 2022, Mr Chandrasekhar's adjusted taxable income was varied to $143,144, and his self-support amount was increased by $11,000.