Holland and Simpson (Child support)

This matter concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth) by Mr Holland, who sought to vary the child support assessment payable to Ms Simpson. The dispute centred on the parties' respective incomes, financial resources, and the costs associated with raising their children, including childcare and special needs expenses. The Tribunal was required to determine whether the existing administrative assessment resulted in an unjust and inequitable outcome for the parties.

The primary legal issues before the Tribunal were whether grounds for departure from the administrative assessment existed, and if so, whether a departure would be just and equitable and otherwise proper. Specifically, the Tribunal had to consider the parties' income and financial resources, including Ms Simpson's uncompensated work for her sister's firm, which the Tribunal found to be implicitly compensated through overseas holidays. The Tribunal also examined Ms Simpson's claims regarding childcare costs and special needs expenses for the children, and Mr Holland's financial circumstances, including his income and expenditure.

The Tribunal reasoned that Ms Simpson's arrangements with her sister, involving approximately 15 hours of work per week for over a year without direct payment, suggested an undeclared financial resource. Applying the national minimum casual hourly wage, the Tribunal assessed her annual income at $54,307. Conversely, Mr Holland's income was assessed at $87,659 per annum. The Tribunal found that the difference between the original assessment and the revised figures constituted special circumstances, making the original assessment unjust and inequitable. While Ms Simpson raised grounds concerning childcare and special needs costs, the Tribunal found that only the childcare costs warranted an adjustment, increasing Mr Holland's annual payment by $1,196 for a specific period.

The Tribunal set aside the decision under review and substituted it with a new determination. Mr Holland's adjusted taxable income was varied to $87,659 per annum and Ms Simpson's to $54,307 per annum for the period of 1 July 2018 to 30 October 2021. Additionally, Mr Holland's annual child support payment was increased by $1,196 for the period of 1 July 2018 to 3 February 2020 to account for childcare costs. The Tribunal concluded that this departure determination was just and equitable for both parties.