Fry and Peyton (Child support)

The Administrative Appeals Tribunal considered a dispute concerning a child support departure determination between Mr Fry and Mr Peyton. The core of the disagreement related to the income, property, and financial resources of both parents, and specifically the earning capacity of the liable parent, Mr Peyton.

The Tribunal was required to determine whether a ground for departure from the child support assessment had been established, and if so, whether it was otherwise proper to make a departure determination. In making this assessment, the Tribunal had to consider the nature and duty of a parent to maintain a child, and the potential impact of any departure order on any entitlement to, or the rate of, an income-tested pension, allowance, or benefit payable to the child or carer.

The Tribunal found that a ground for departure was established, likely due to considerations of Mr Peyton's earning capacity. In assessing whether the departure was otherwise proper, the Tribunal noted that neither parent was in receipt of family tax benefits, concluding that the proposed departure would not adversely affect any cost to the community. Consequently, the Tribunal considered the departure to be proper in the circumstances. The Tribunal ordered that the decision to depart be made effective from 31 July 2020, allowing for any subsequent changes in Mr Peyton’s income to be reflected.