Knott and Knott (Child support) - [2022] AATA 1709

Knott and Knott (Child support) [2022] AATA 1709 (19 April 2022)

DIVISION:Social Services & Child Support Division
REVIEW NUMBER:  2021/SC022092
APPLICANT:  Mr Knott
OTHER PARTIES:  Child Support Registrar
Ms Knott

TRIBUNAL:Member R Anderson
DECISION DATE: 19 April 2022
DECISION:

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

The annual rate of child support payable by Mr Knott to Ms Knott in respect of [Child 1] and [Child 2] is varied to $15,500 for the period 10 March 2020 to 19 May 2021;
The annual rate of child support payable by Mr Knott to Ms Knott in respect of [Child 1] and [Child 2] is varied to $13,000 for the period 20 May 2021 to 14 September 2021;
The annual rate of child support payable by Mr Knott to Ms Knott in respect of [Child 1] and [Child 2] is varied to $14,886 for the period 15 September 2021 to 31 March 2022;
The adjusted taxable income of Mr Knott is varied to $80,000 for the period 1 April 2022 to 31 December 2023; and
The annual self-support amount used in the administrative formula in respect of Mr Knott is to be reduced to $12,220 for the period 1 April 2022 to 31 December 2023.

CATCHWORDS

CHILD SUPPORT – departure determination – income, property and financial resources of the liable parent – a ground for departure established – decision to depart – 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 removed 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 Knott and Ms Knott are the separated parents of [Child 2] and [Child 1]. According to the records of Services Australia – Child Support (the Agency), the child support assessment was registered on 4 February 2019. The Agency has been responsible for the collection of child support from Mr Knott since that time.
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 administrative assessment is generally 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 Agency. This was the case from the outset in respect of the calculation of Mr Knott’s child support liability.
Following Mr Knott’s application for personal bankruptcy and liquidation of [Company 1], as the corporate trustee for [Trust 1] in late February 2020, the Agency accepted a first estimate of Mr Knott’s adjusted taxable income (ATI) in respect of the period 10 March 2020 to 30 June 2020 in the amount of $0. The assessment had previously been calculated using ATIs of Mr Knott and Ms Knott in respect of 2018/19 in the…

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 Knott and Knott (Child support)

Details

AGLC: Knott and Knott (Child support) [2022] AATA 1709
Case: [2022] AATA 1709
Decision Date: 19 April 2022

CaseChat Overview and Summary

This matter concerned an application by the liable parent, Mr. Knott, for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The dispute centred on whether the child support assessment should be varied due to the liable parent's income, property, and financial resources. The case was heard by R Anderson M.

The primary legal issue before the court was whether the liable parent had established a ground for departure from the child support assessment, and if so, whether a departure was justified. This involved an examination of the liable parent's financial circumstances and whether they were such that the assessment did not make proper or adequate provision for the child.

The court considered the evidence presented regarding the liable parent's income, property, and financial resources. It was found that a ground for departure was established. Consequently, the court set aside the original decision and substituted its own determination, departing from the assessment.

Orders