Heywood and Annon (Child support)

This matter concerned an application by Ms Heywood for a departure determination regarding child support payable by Mr Annon. The dispute centred on the income, property, and financial resources of Mr Annon, with Ms Heywood alleging that he was using company and trust structures to minimise his income for child support purposes. The case was heard by C Breheny M.

The court was required to determine whether a ground for departure from the administrative assessment of child support was established, specifically concerning Mr Annon's income, property, and financial resources. It also needed to consider whether making a departure determination would be just and equitable, and otherwise proper, having regard to the financial circumstances of both parents and the needs of the child.

The court found that Mr Annon's declared income did not accurately reflect his financial capacity. It noted discrepancies in his financial information and evidence of significant funds being transferred to a family trust of which his wife was a beneficiary, suggesting Mr Annon had access to these resources. The court calculated Mr Annon's actual income and financial resources for the 2020/21 financial year to be approximately $199,040, a figure substantially higher than his declared income. This significant difference between his actual financial resources and his assessed income was found to constitute special circumstances warranting a departure. The court also considered the financial positions of both parties, noting Ms Heywood's reliance on Centrelink payments and significant expenses for the child, including childcare costs, while finding Mr Annon had the capacity to meet his commitments.

The court set aside the previous decision and substituted a new determination. For the period from 1 October 2020 to 31 December 2021, the rate of child support payable by Mr Annon was set at $370 per week. For the subsequent period from 1 January 2022 to 31 December 2024, the rate was increased to $400 per week to account for childcare costs. The court was satisfied that these increased payments would assist Ms Heywood and that Mr Annon had the capacity to meet them without undue hardship.