Debenham and Debenham (Child support)

This matter concerned an appeal by the liable parent, Mr Debenham, against a departure determination made by the Child Support Registrar. The Registrar had determined that the liable parent's child support assessment should be departed from, on the basis that the liable parent had a greater ability to pay child support than was indicated by his assessed income. The appeal was heard by the Federal Circuit Court of Australia.

The primary legal issue before the Court was whether the Registrar had erred in making the departure determination. Specifically, the Court was required to consider whether the liable parent possessed income, property, or financial resources that were not taken into account in the assessment, and whether these resources were such that the liable parent had a greater capacity to pay child support than was reflected in the assessment. The Court also considered the benefits derived by the liable parent from his business interests.

The Court reviewed the evidence presented regarding the liable parent's financial position, including his income and the benefits he derived from his business. It was found that the liable parent had access to significant financial resources beyond his declared income, particularly through his business activities. The Court applied the principles of the *Child Support (Registration and Collection) Act 1988*, focusing on the grounds for departure where a parent's actual financial capacity exceeds that indicated by their assessed income. The Court concluded that the Registrar's decision was justified.

The Court set aside the Registrar's departure determination and substituted its own. The Court ordered that the liable parent's child support assessment be varied to reflect his actual financial capacity.