Ewell and Hargrove (Child support)

This matter concerned an appeal by the liable parent, Mr Ewell, against a departure determination made by the Child Support Registrar. The determination related to child support payable for the parties' two children, and specifically addressed the Registrar's decision to depart from the assessment based on the liable parent's income, property, and financial resources, and a separate departure for orthodontic expenses. The appeal was heard by the Federal Circuit Court of Australia.

The primary legal issues before the Court were whether the Registrar had erred in her assessment of the liable parent's income, particularly in relation to income derived from his business, and whether the Registrar had correctly determined that a departure from the assessment was warranted for orthodontic expenses. The Court was required to consider the extent to which the liable parent's actual financial capacity, as opposed to his declared income, should be taken into account in the child support assessment.

In his reasoning, the Court noted that the Registrar had found that the liable parent's declared income did not accurately reflect his earning capacity, particularly given his involvement in a business. The Court affirmed the principle that child support assessments should reflect a parent's true financial capacity, and that the Registrar was entitled to consider income derived from business activities, even if not formally declared as salary. Regarding the orthodontic expenses, the Court found that the Registrar had not adequately considered the reasonableness and necessity of these expenses in the context of the liable parent's overall financial obligations. Consequently, the Court set aside the Registrar's departure determination and substituted its own orders.