Danabie and Smailie (Child support)

This matter concerned an application by Mr Danabie for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth) to alter his child support liability. Mr Danabie sought to have his adjusted taxable income (ATI) reduced retrospectively, arguing that his previous income level was not representative of his current financial circumstances and that paying the assessed amount would cause him hardship. The decision was made by Member J Bakas of the Tribunal.

The primary legal issue before the Tribunal was whether there were special circumstances that made it unjust or inequitable to apply the child support assessment based on Mr Danabie’s previously assessed income. This required the Tribunal to consider the factors outlined in subsection 117(4) of the Act, specifically in relation to Mr Danabie’s financial situation and the period for which any change to the assessment should commence. The Tribunal also had to determine an appropriate ATI for Mr Danabie that fairly reflected his income and financial resources.

The Tribunal reasoned that while Mr Danabie’s tax return for the 2022/23 year showed a low income, his actual earnings and benefits indicated a higher financial capacity. However, it acknowledged a period of unemployment and a subsequent reduction in benefits. The Tribunal found that a departure from the administrative assessment was warranted and determined that Mr Danabie’s ATI should be adjusted to $45,000 from 27 January 2023, a date reflecting when he ceased receiving benefits from a business. This adjustment was considered to fairly represent his income and financial resources, while Ms Smailie’s income would remain unchanged. The Tribunal considered this date appropriate as it provided notice to both parties that the assessment was being reconsidered.