Khoo and Beazley (Child support)

This matter concerned an application for review by Mr Khoo of a decision by a departmental objections officer concerning a child support assessment for his two children, [Child 1] and [Child 2]. Mr Khoo and Ms Beazley are the parents of the children, and a child support assessment has been in place since 2016. Mr Khoo sought a departure from the administrative assessment on the grounds of private school fees and income and financial resources, while Ms Beazley cross-applied on the grounds of special needs and private school fees. The Social Services and Child Support Division of the Tribunal was required to determine whether a ground existed to depart from the administrative assessment and, if so, whether such a departure would be just and equitable.

The Tribunal considered whether the costs of educating the children in the manner expected by both parents constituted a ground for departure under subparagraph 117(2)(b)(ii) of the *Child Support (Assessment) Act 1989* (the Assessment Act). It was established that both parents intended for the children to be privately educated at [School 1], and the tuition fees of $8,700 significantly increased the overall cost of maintaining the children. The Tribunal found this to be a special circumstance, thus establishing a ground for departure. The Tribunal also considered [Child 1]'s special needs requiring surgery, which was a further ground for departure.

In determining whether a departure would be just and equitable, the Tribunal examined the financial circumstances of both parents under subsection 117(4) of the Assessment Act. Despite some doubts regarding the veracity of Mr Khoo's declared income and expenses, the Tribunal found no reason to disturb the decision to set his adjusted child support income at $75,000 per annum, adjusted for inflation. The Tribunal also considered Ms Beazley's financial position, noting her business ownership, investment properties, and declared income. The Tribunal varied the decision under review to set Ms Beazley’s adjusted taxable income at $65,000 from 1 January 2020 to 31 December 2021, with all other aspects of the decision remaining unchanged.