La and Rabb (Child support)

The Administrative Appeals Tribunal (AAT) considered a dispute between Ms La and Mr Rabb concerning the percentage of care each parent had for their child, which impacts child support assessments. The core of the dispute revolved around a decision made by Child Support on 11 August 2017 to vary the care percentages from 100% for Ms La and 0% for Mr Rabb to 19% for Ms La and 81% for Mr Rabb, effective from 4 August 2017. Mr Rabb later objected to this decision, and a subsequent decision on 8 September 2020 varied the percentages to 15% for Ms La and 85% for Mr Rabb, with the change taking effect from 6 May 2020, the date of Mr Rabb's objection. Ms La sought a review of this latter decision.

The Tribunal was required to determine whether there had been a change to the likely pattern of care for the child on 4 August 2017, and if so, what care percentages should be applied in the child support assessment, and from what date these new percentages should take effect. The Tribunal also considered whether there were special circumstances that would allow the change to be backdated beyond the date of Mr Rabb's objection. The Tribunal's role was to determine the intended pattern of care as at the time of the original decision, rather than to reconcile the actual care that subsequently occurred.

The Tribunal found that court orders made on 28 July 2017 indicated a significant shift in the child's living arrangements from 4 August 2017, with the child to live with Mr Rabb. Based on the evidence, including the court orders and the parents' stated intentions, the Tribunal was satisfied that Ms La was intended to have 77 nights of care per year. Applying the relevant provisions of the Child Support (Assessment) Act 1989, the Tribunal determined that the existing care percentages were revoked from 3 July 2017, and new care percentages commenced from 4 July 2017, resulting in Ms La having a 21% care percentage and Mr Rabb having a 79% care percentage. Regarding the date of effect, the Tribunal found no special circumstances that prevented Mr Rabb from lodging his objection earlier, meaning the change to the care percentages was to take effect from the date of his objection, 6 May 2020.

Consequently, the Tribunal set aside the decision under review and substituted its own decision. The Tribunal determined that Ms La had a care percentage of 21% and Mr Rabb had a care percentage of 79% in respect of the child from 4 August 2017, with the change having effect from 6 May 2020.