Epworth and Delta (Child support) - [2019] AATA 4299

Epworth and Delta (Child support) [2019] AATA 4299 (19 July 2019)

DIVISION:Social Services & Child Support Division
REVIEW NUMBER:  2018/MC015604
APPLICANT:  Mr Epworth
OTHER PARTIES:  Child Support Registrar
Ms Delta

TRIBUNAL:Member P Noonan
DECISION DATE: 19 July 2019
DECISION:

The Tribunal sets aside the decision under review and, in substitution, decides that:

Mr Epworth’s adjusted taxable income is varied to:
·nil for the period 12 November 2017 to 1 January 2018;
·$16,732 for the period 2 January 2018 to 1 February 2018;
·$150,266 for the period 2 February 2018 to 30 June 2018;
·$175,190 for the period 1 July 2018 to 23 September 2018;
·$150,266 for the period 24 September 2018 to 9 December 2018;
·$237,266 for the period 10 December 2018 to 1 January 2019;
·$220,534 for the period 2 January 2019 to 6 June 2019.

Further that for the period 12 November 2017 to 6 June 2019 Ms Delta’s adjusted taxable income is varied to $92,228.

CATCHWORDS

CHILD SUPPORT – departure determination – lump sum payments to liable parent from family business – workcover payments - income of receiving parent - decision under review set aside and substituted

REASONS FOR DECISION

BACKGROUND

Ms Delta and Mr Epworth are the parents of two children.
The Child Support (Assessment) Act 1989 (“the Act”) provides for an administrative assessment of the child support payable. It uses a formula, which contains variables such as the parents’ adjusted taxable incomes and their percentages of care of the children. The Act also provides for a departure from the administrative assessment in certain circumstances.
A child support case was first registered with the Department of Human Services (the Department) on 8 August 2014 and child support is registered for collection by the Department. Care of the children is registered as being 309 nights per year to Ms Delta and 56 nights per year to Mr Epworth.
On 4 May 2018 Ms Delta applied for a departure from the administrative assessment of child support payable. The applicable administrative assessment at that time was as follows:
· From 15 March 2018 to 30 June 2018 Mr Epworth is required to pay nil child support based upon his 2018–19 estimated income of $38,377 and Ms Delta’s 2016–17 adjusted taxable income of $77,813.
On 28 June 2018, a Department officer, acting as a delegate of the Child Support Registrar, found that a ground for departure was established and decided to depart from the administrative assessment in the following terms:
·     For the period 15 March 2018 to 31 March 2020, Mr Epworth’s adjusted taxable income is set at $143,106;
·     For the period 15 March 2018 to 31 March 2020, Ms Delta’s adjusted taxable income is set at $97,500;
·     For the period 15 March 2018 to 14 March 2019, Mr Epworth’s self-support amount is increased by $16,200;
·     For the period 15 March 2019 to 31 March 2020, Mr Epworth’s self-support amount is increased by $13,700.
On 1 August 2018 Mr Epworth objected to this decision. On 16…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Epworth and Delta (Child support)

Details

AGLC: Epworth and Delta (Child support) [2019] AATA 4299
Case: [2019] AATA 4299
Decision Date: 19 July 2019

CaseChat Overview and Summary

The case of *Epworth and Delta (Child support)* concerned a review of a child support departure determination made by the Child Support Registrar. The dispute involved the assessment of a liable parent's income for child support purposes, specifically in relation to lump sum payments received from a family business and WorkCover payments. The matter came before the court for review of the Registrar's decision.

The primary legal issue before the court was whether the Registrar had erred in their assessment of the liable parent's income when considering the lump sum payments and WorkCover payments. This involved determining whether these payments constituted income for the purposes of child support legislation and, if so, how they should be treated in calculating the child support liability. The court was required to consider the nature of these payments and their relevance to the liable parent's capacity to pay child support.

In its reasoning, the court analysed the nature of the lump sum payments from the family business and the WorkCover payments. It applied the principles of child support legislation concerning the definition and assessment of income. The court found that the Registrar's decision had not adequately considered the impact of these payments on the liable parent's income. Consequently, the court determined that the departure determination made by the Registrar was not sound. The court set aside the Registrar's decision and substituted its own determination regarding the child support payable.

Orders