Kovacich and Shawcross (Child support)

This matter concerned an appeal to the Child Support Appeals Tribunal regarding a departure determination made under the *Child Support (Registration and Collection) Act 1988* (Cth). The appeal was brought by the liable parent, Mr. Kovacich, against the decision of the Registrar of the Child Support Agency to depart from the formula assessment of child support. The dispute centred on whether Mr. Kovacich's redundancy payment should be considered as part of his income, property, or financial resources for the purposes of calculating child support.

The primary legal issue before the Tribunal was whether the Registrar had erred in finding that a ground for departure was established under section 117(2) of the Act, and consequently, whether the decision to depart from the formula assessment was justified. Specifically, the Tribunal had to consider whether the redundancy payment constituted an "income, property or financial resource" of the liable parent that was not otherwise taken into account by the formula assessment, and if so, whether it would be fair and just to depart from the assessment.

The Tribunal affirmed the Registrar's decision, finding that the redundancy payment was a financial resource that had not been taken into account by the formula assessment. It reasoned that the payment, being a lump sum received by Mr. Kovacich, represented a significant increase in his financial capacity during the relevant period. The Tribunal applied the principles established in child support jurisprudence, which permit departure from the formula assessment where it would be unfair and unjust not to do so, and where specific grounds for departure are met. The lump sum nature of the redundancy payment was considered a relevant factor in determining that a departure was warranted to ensure a fair assessment of child support obligations.