Farren and Alvey (Child support)

This matter concerned an appeal by the father, Mr Alvey, against a departure determination made by the Child Support Registrar. The mother, Ms Farren, had sought a departure from the assessment of child support payable by the father, arguing that his actual income and financial resources were significantly higher than his assessed income, and that certain expenses he incurred, specifically the costs of his children's education, should not be taken into account in reducing his child support liability. The appeal was heard by the Federal Circuit and Family Court of Australia.

The primary legal issues before the court were whether the Registrar had erred in her assessment of the father's income and financial resources, and whether the Registrar had correctly considered the impact of the father's expenditure on his children's education when making the departure determination. Specifically, the court had to determine if the father's business income had been accurately calculated and if the costs of private schooling were a relevant factor in reducing his child support obligations under the *Child Support (Registration and Collection) Act 1988*.

The court found that the Registrar had made an error in her assessment of the father's income, having failed to properly account for certain business expenses. Furthermore, the court determined that the Registrar had erred in law by treating the costs of the children's education as a factor that could reduce the father's child support liability, when such costs were not a permissible consideration under the relevant legislative provisions for departure from a child support assessment. The court applied the principles of statutory interpretation to the *Child Support (Registration and Collection) Act 1988*, focusing on the specific grounds for departure and the definition of income and financial resources.

The court set aside the Registrar's departure determination and substituted its own decision, finding that the father's child support liability should be reassessed based on a corrected calculation of his income and without regard to the education expenses.