Coverdale and Easton (Child support)

The case of *Coverdale and Easton* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to vary the assessed child support payable by the respondent, primarily due to the respondent's alleged business income and the significant costs associated with the child's education and orthodontic treatment. The matter was heard by Member K Buxton of the Child Support Special Powers Division.

The central legal issues before the court were whether the respondent possessed income and financial resources beyond those declared, and whether the existing child support assessment was insufficient to meet the child's needs, specifically in relation to educational expenses and orthodontic treatment, in a manner that was expected by both parents. The court was required to consider the extent to which the respondent's business income should be attributed to him for child support purposes and whether these exceptional circumstances warranted a departure from the standard assessment.

Member Buxton's reasoning focused on the interpretation of "income" and "financial resources" within the context of the Act, particularly concerning income derived from a business. The court applied the principles of attributing income where it is found to be deliberately under-declared or where business structures are used to minimise personal income. Furthermore, the court considered the "relevant needs of the child" and the "relevant circumstances of any person (including the capacity of any person to pay any amount of child support)" as outlined in the legislation. The court found that the evidence supported the attribution of additional income to the respondent and that the child's educational and orthodontic needs, in conjunction with the respondent's capacity, justified a departure from the assessed amount.

The decision under review was set aside and substituted with a new child support assessment that reflected the additional income attributed to the respondent and the child's specific needs.