Hadley and Hadley (SSAT Appeal)

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FEDERAL MAGISTRATES COURT OF AUSTRALIA

HADLEY & HADLEY (SSAT APPEAL) [2008] FMCAfam 1252
CHILD SUPPORT – Appeal from decision of SSAT – earning capacity of the applicant – application of s.117(7B).
Child Support (Assessment) Act 1989
Child Support (Registration and Collection) Act 1988
Child Support Legislation Amendment (Reform of the Child Support Scheme – New Formula and Other Measures) Act 2006
LDME & JMA (SSAT Appeal) [2007] FMCAfam 712
Tasman & Tisdall [2008] FMCAfam 126
Applicant: MR HADLEY
Respondent: MS HADLEY
File Number: BRC 3839 of 2008
Judgment of: Slack FM
Hearing date: 13 November 2008
Date of Last Submission: 13 November 2008
Delivered at: Brisbane
Delivered on: 24 December 2008

REPRESENTATION

Counsel for the Applicant: Mr McGregor
Solicitors for the Applicant: Lember & Williams
Counsel for the Respondent: Mr Burridge
Solicitors for the Respondent: Biggs Fitzgerald Pike

ORDERS

  1. That the Appeal be allowed and the matter be remitted to the SSAT to be reheard by a differently constituted Tribunal.

IT IS NOTED that publication of this judgment under the pseudonym Hadley & Hadley is approved pursuant to s.121(9)(g) of the Family Law Act 1975 (Cth).

FEDERAL MAGISTRATES
COURT OF AUSTRALIA AT
BRISBANE

BRC 3839 of 2008

MR HADLEY

Applicant

And

MS HADLEY

Respondent

REASONS FOR JUDGMENT

  1. In this appeal from the decision of the Social Security Appeals Tribunal (hereafter “the SSAT”) dated 31 March 2008, the applicant relies on five grounds of appeal, namely:

    1.The SSAT erred in determining as it did that the ground referred to in sections 117(2)(c)(ia) and 117(2)(c)(ib) were made out.

    2.The determination that the ‘First Applicant’ would have an income of $36,000 was not supported by the evidence and was in error.

    3.The determination by the Tribunal to prefer the assessment of Dr C referred to in paragraph 73 of the reasons for decision was misguided and against the evidence in that


    Dr C’s assessment was outdated insofar as reliance on it is concerned to support a view that the applicant had an earning capacity that post dated the assessment by Dr C whereas the evidence of Dr R covered the relevant period (Dr C did not) and he was the applicant’s treating medical practitioner (whereas Dr C saw Mr Hadley on one occasion only).

    4.The finding of the Tribunal in paragraph 74 of the determination that Mr Hadley’s cessation of work was not justified on medical grounds was against the evidence and in error.

    5.The determination in paragraphs 75 and 76 of the decision to the effect that Mr Hadley has an earning capacity of $36,000 or $35,000 per annum is not supported by evidence and is in error.

Background

  1. I have taken into account and accepted the following facts.

  2. The relevant child support assessments relate to the children [X] born in 1991, [Y] born in 1992 and [Z] born in 1994.

  3. For the period 29 March 2006 to 22 May 2006, the applicant was administratively assessed to pay an annual rate of child support of $1,874.

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Details
Case
[2008] FMCAfam 1252
Decision Date

CaseChat Overview and Summary

The case of Hadley and Hadley was before the Social Security Appeals Tribunal (SSAT) and on appeal to the Administrative Appeals Tribunal (AAT). The primary dispute centered on the application of the new internal objection procedures and the SSAT merits review regime introduced by the Reform Act to pending matters. Specifically, the issue was whether objection decisions made by the Registrar concerning the child support period up to 31 December 2006 were subject to SSAT review.

The court was required to interpret and apply the provisions of Item 77 of Schedule 3 of the Reform Act. The relevant subitems provided that decisions made by the Registrar under the Registration and Collection Act or the Assessment Act before the commencement of the Reform Act were subject to Part VII (internal review). However, decisions on objections completed before the commencement of the Reform Act were governed by the Acts as in force immediately before that commencement. The court needed to determine whether the objection decisions made during 2006 for the child support period ending 31 December 2006 were reviewable by the SSAT.

The court concluded that the objection decisions made during 2006 for the child support period ending 31 December 2006 were not reviewable by the SSAT. This was based on Item 77(3) of Schedule 3 of the Reform Act, which stipulated that the SSAT review provisions did not apply to those objection decisions as the relevant Acts continued to apply in relation to the original decision and the objection decision. Consequently, the appeal was allowed, and the matter was remitted to the SSAT to be reheard by a differently constituted Tribunal.

ORDERS:
1. That the Appeal be allowed and the matter be remitted to the SSAT to be reheard by a differently constituted Tribunal.

Orders

Orders of the court

1.

That the Appeal be allowed and the matter be remitted to the SSAT to be reheard by a differently constituted Tribunal.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

Part 2 of Schedule 3 of the Reform Act contains the provisions as to whether and, if so how, pending matters are caught by the new internal objection procedures and the SSAT merits review regime. Relevant to this case, Item 77(1) – (5) provide:77 Application–review of decisionsDecisions of the Registrar–internal review pending or not yet started at commencement(1) Subject to subitem (3), Part VII (internal review) of the Registration and Collection Act (as amended by this Schedule) applies in relation to a decision made by the Registrar under that Act or the Assessment Act before or after the commencement of this item.Note: Part VII of the Registration and Collection Act (as amended by this Schedule) also applies if a proceeding for internal review was pending under that Part or Part 6B of the Assessment Act immediately before the commencement of this item (see subitem (4)).(2) Part VIIA (SSAT review) of the Registration and Collection Act (as inserted by this Schedule) applies in relation to a decision made by the Registrar under subsection 83(1) or 87(1) of the Registration and Collection Act after the commencement of this item.Decisions of the Registrar–internal review completed before commencement(3) If, before the commencement of this item:(a) a person objected under:(i) Part 6B of the Assessment Act; or(ii) Part VII of the Registration and Collection Act;to a decision (however described) of the Registrar (the original decision); and(b) the Registrar made a decision (the objection decision) on the objection under:(i) subsection 98ZC(1) of the Assessment Act; or(ii) subsection 87(1) or 98(1) of the Registration and Collection Act;those Acts, as in force immediately before that commencement, continue to apply in relation to the original decision and the objection decision.Pending proceedings–internal reviews(4) A proceeding before the Registrar that, immediately before the commencement of this item, was pending under:(a) Part 6B of the Assessment Act; or(b) Part VII of the Registration and Collection Act;is taken, at that commencement, to be pending under Part VII of the Registration and Collection Act as amended by this Schedule.(5) The Assessment Act and the Registration and Collection Act, as in force immediately before the commencement of this item, continue to apply in relation to a decision made by the Registrar before that commencement under:(a) subsection 98ZE(1) of the Assessment Act; or(b) subsection 91(1) or 101(1) of the Registration and Collection Act. Relevant to the facts of this matter, the objections with respect to the child support period up to 31 December 2006 under Part 6B of the Assessment Act had been decided during 2006. Under Item 77(3) of Schedule 3 of the Reform Act, the SSAT review provisions did not apply to those objection decisions as those Acts as in force immediately before that commencement continue to apply in relation to the original decision and the objection decision. Therefore, I consider that the objection decisions made during 2006 for the child support period ending 31 December 2006 were not reviewable by the SSAT.

Ratio Decidendi

Legal Principle Established

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