Hamshaw and Iddings (Child support)

The Administrative Appeals Tribunal (AAT) considered an application by Hamshaw (the applicant) for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to have the assessed child support payable by Iddings (the respondent) reduced, arguing that the costs of maintaining the child were significantly affected by the respondent's financial resources. Specifically, the applicant contended that the respondent's substantial financial resources meant that the standard assessment did not adequately reflect the child's needs and the respondent's capacity to contribute.

The central legal issue before the Tribunal was whether the respondent's financial resources were such that the costs of maintaining the child were significantly affected, thereby justifying a departure from the standard child support assessment. This required the Tribunal to consider the meaning of "significantly affected" in the context of the respondent's financial capacity and the child's actual or likely expenses.

The Tribunal found that the respondent possessed significant financial resources, including substantial assets and income, which were not fully reflected in the standard assessment formula. Applying the principles of the *Child Support (Registration and Collection) Act 1988*, the Tribunal determined that these financial resources did indeed significantly affect the costs of maintaining the child. Consequently, the Tribunal set aside the original decision and substituted its own, ordering a departure from the assessed child support amount to reflect the respondent's greater capacity to contribute to the child's expenses.