Cheadle and Cheadle (Child support)

This matter concerned an appeal to the Administrative Appeals Tribunal (AAT) regarding a child support departure determination. The appellant, the liable parent, sought to have his child support assessment varied on the grounds of his alleged earning capacity. The respondent, the other parent, opposed this application.

The primary legal issue before the Tribunal was whether the liable parent had established a ground for departure from the child support assessment under section 117 of the *Child Support (Registration and Collection) Act 1988* (Cth). Specifically, the Tribunal had to determine if the liable parent's earning capacity was such that the existing assessment was unjust or inequitable.

The Tribunal found that the liable parent had not satisfied the criteria for establishing earning capacity as a ground for departure. The evidence presented did not demonstrate that his current employment situation was a deliberate attempt to reduce his child support obligations or that his earning capacity was significantly higher than his actual earnings. Consequently, the Tribunal concluded that a ground for departure had not been established.

The Tribunal set aside the decision under review and substituted it with a new decision refusing to depart from the child support assessment.