Hudson and Westwood (Child support)

The matter of *Hudson and Westwood* concerned an appeal to the Child Support Special Powers Division of the Federal Circuit and Family Court of Australia regarding a child support assessment. The dispute centred on the income and financial resources of the parents, specifically the business income of one of the parties, and whether the existing assessment should be departed from.

The court was required to determine whether the assessment of child support was unjust or inequitable having regard to the specific circumstances of the case, particularly the business income of one parent. This involved considering whether the income declared for the purposes of the assessment accurately reflected the parent's capacity to pay, and if not, what adjustments should be made.

In reaching its decision, the court applied the principles of the *Child Support (Registration and Collection) Act 1988* concerning departure from a child support assessment. The court examined the evidence presented regarding the business income, considering factors such as the nature of the business, its profitability, and the actual financial benefit derived by the parent. The court found that the assessment did not adequately reflect the parent's financial capacity and therefore set aside the original decision and substituted an amended assessment.