Cheetham and Cheetham (Child support)

This matter concerned an appeal by the father, Mr Cheetham, against a departure determination made by the Registrar of the Child Support Agency. The Registrar had determined that the father's child support assessment should be increased to take into account the special needs of the child, a factor which the father argued was not properly considered. The appeal was heard by the Federal Magistrates Court of Australia.

The primary legal issue before the Court was whether the Registrar had erred in making the departure determination, specifically concerning the assessment of the father's income and the extent to which the child's special needs warranted a departure from the standard assessment. The Court was required to consider the provisions of the Child Support (Registration and Collection) Act 1988, particularly those relating to departure from a child support assessment due to the special needs of a child and the calculation of a parent's income.

The Court found that the Registrar had failed to adequately consider the father's business income and the true extent of his capacity to pay. It was held that the Registrar's assessment of the father's income was too conservative and did not reflect his actual earning capacity. Furthermore, the Court determined that while the child did have special needs, the departure amount ordered by the Registrar was excessive and not sufficiently justified by the evidence presented. The Court applied the principles of assessing income for child support purposes, emphasising the need for a realistic appraisal of earning capacity, and the criteria for departing from a standard assessment due to special needs.

Consequently, the Court set aside the Registrar's departure determination and substituted its own order, which adjusted the child support assessment to a level considered more appropriate and reflective of the father's income and the child's needs.