Isaac and Isaac (Child support) - [2020] AATA 582

Isaac and Isaac (Child support) [2020] AATA 582 (24 January 2020)

DIVISION:Social Services & Child Support Division
REVIEW NUMBER:  2019/MC016653
APPLICANT:  Mrs Isaac
OTHER PARTIES:  Child Support Registrar
Mr Isaac

TRIBUNAL:Member R Anderson
DECISION DATE: 24 January 2020
DECISION:

The tribunal sets aside the decision under review and, in substitution, decides that:

·     In respect of the period 1 January 2019 to 30 June 2019, the adjusted taxable income of Mr Isaac is varied to $78,053 per annum;
·     In respect of the period 1 January 2019 to 31 December 2020, the annual rate of child support payable by Mr Isaac is increased by $2,270 per annum;
·     In respect of the period 1 July 2019 to 30 June 2020, the adjusted taxable income of Mr Isaac is varied to $79,257 per annum;
·     In respect of the period commencing 1 July 2020 to 30 June 2021, the adjusted taxable income of Mr Isaac is varied to $80,445 per annum,
·     In respect of the period commencing 1 July 2021 until a terminating event occurs in respect of the child support assessment of [Child 3], the adjusted taxable income of Mr Isaac is varied to $81,652 per annum.

CATCHWORDS

CHILD SUPPORT – departure determination – costs of education - manner expected by both parents - cost of maintaining the child is significantly affected – financial resources of both parents - decision under review set aside and substituted

Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been omitted from this decision and replaced with generic information so as not to identify involved individuals as required by subsections 16(2AB)-16(2AC) of the Child Support (Registration and Collection) Act 1988.

REASONS FOR DECISION

BACKGROUND

Mr Isaac and Mrs Isaac are the parents of [Child 1], [Child 2] and [Child 3]. According to records of the Department of Human Services – Child Support (the Department), the child support assessment was registered [in] September 2014. The Department has been responsible for the collection of child support from Mr Isaac from the outset.
For the purposes of this review, [Child 1] is no longer a child of the assessment, while [Child 2] ceased to be a child of the assessment on 14 November 2018, following completion of her secondary school studies.
The child support liability is generally calculated in accordance with the administrative assessment, as provided in the Child Support (Assessment) Act 1989 (the Act). The calculation is based on the income recorded by each parent in their most recently completed tax returns, as lodged with the Australian Taxation Office (ATO), or the most recent estimate accepted by the Department. It is open to either parent to lodge an application for a departure from the administrative assessment under Part 6A of the Act if they consider the administrative assessment results in an unfair amount of child support payable by one parent.
Following an extended period of sick leave, Mr Isaac was dismissed from [Employer 1] in…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Isaac and Isaac (Child support)

Details

AGLC: Isaac and Isaac (Child support) [2020] AATA 582
Case: [2020] AATA 582
Decision Date: 24 January 2020

CaseChat Overview and Summary

The matter of *Isaac and Isaac (Child Support)* concerned an appeal to the court regarding a child support departure determination. The primary dispute revolved around whether the costs of a child's education should be considered in the assessment of child support payments, and if so, how those costs should be factored in, particularly when the manner of education was expected by both parents. The decision was made by R Anderson M.

The court was required to determine two key legal issues. Firstly, whether the costs associated with the child's education constituted a relevant factor for a departure determination under the *Child Support (Registration and Collection) Act 1988*. Secondly, if such costs were relevant, the court had to consider whether the financial resources of both parents were such that the cost of maintaining the child was significantly affected by the educational choices made.

In reaching its decision, the court applied the principles governing departure determinations, focusing on whether the existing child support assessment was unjust or inequitable given the specific circumstances. The court reasoned that the costs of education, particularly when aligned with the expectations of both parents, could indeed significantly affect the cost of maintaining the child. The financial capacity of each parent was a crucial consideration in determining whether a departure from the standard assessment was warranted to account for these educational expenses. The court ultimately set aside the original decision and substituted its own determination.

Orders