Dunlop and Nelson (Child support)

The matter of *Dunlop and Nelson* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to have the assessed child support payable by the respondent varied, alleging that the respondent possessed income, property, and financial resources beyond those disclosed in the child support assessment. The decision was made by SM Longo.

The primary legal issue before the court was whether the respondent's actual financial position warranted a departure from the standard child support assessment. This required the court to consider whether the respondent had deliberately reduced their income or otherwise dealt with their property or financial resources in a way that diminished their capacity to pay the assessed child support amount.

SM Longo found that a ground for departure was established, concluding that the respondent had indeed manipulated their financial circumstances to avoid their child support obligations. The court applied the principles of the *Child Support (Registration and Collection) Act 1988*, focusing on the need to ensure that child support assessments accurately reflect a parent's capacity to pay. The court determined that the respondent's actions constituted a deliberate reduction of their income and disposition of assets, thereby diminishing their ability to meet their child support responsibilities.

Consequently, SM Longo set aside the original departure determination and substituted it with a new decision, ordering a departure from the assessment based on the respondent's true financial position.