Hanchett and Hanchett (Child support)

This matter concerned an appeal by the liable parent, Mr Hanchett, against a departure determination made by the Registrar of the Child Support Agency. The dispute centred on whether the Registrar had erred in departing from the child support assessment on the grounds of the high costs of child care. The appeal was heard by the Federal Magistrates Court of Australia.

The primary legal issue before the Court was whether the Registrar had correctly applied the provisions of the *Child Support (Registration and Collection) Act 1988* (Cth) when making the departure determination. Specifically, the Court had to consider whether the evidence presented established that the costs of child care were of such an amount as to be an "special circumstance" that justified a departure from the assessment, and whether the Registrar had properly considered the income, property, and financial resources of the liable parent in reaching their decision.

The Court found that the Registrar had erred in their assessment of the evidence. While acknowledging that the costs of child care were indeed high, the Court determined that these costs, in isolation, did not constitute a "special circumstance" that warranted a departure from the child support assessment under the Act. The Court emphasised that a departure requires more than just a high expense; it necessitates a consideration of whether that expense is so unusual or exceptional as to justify an alteration of the statutory assessment. The Court also noted that the Registrar had not adequately considered the financial position of the liable parent in the context of the departure application.

Consequently, the Court set aside the Registrar's departure determination and substituted its own decision, which was to refuse the departure application.