Lanachan and Lanachan (Child support) - [2025] ARTA 940

Lanachan and Lanachan (Child support) [2025] ARTA 940 (1 April 2025)

Applicant/s: Mrs Lanachan

Respondent: Child Support Registrar

Other Parties: Mr Lanachan

Tribunal Number: 2024/PC028050
Tribunal: Senior Member S Trotter
Place:Brisbane
Date:1 April 2025
Decision:The Tribunal varies the decision under review so that for the period 1 July 2023 to 30 June 2024 the income used in the assessment for Mrs Lanachan is to be decreased by $10,457.

CATCHWORDS

CHILD SUPPORT – departure from the administrative assessment – income, property and financial resources – financial capacity of a child – under-utilised earning capacity – tax on withdrawn superannuation monies – ground for departure – adjusted taxable income reduced – decision under review varied

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 pursuant to subsection 201(1A) of the Social Security (Administration) Act 1999.

Statement of Reasons

BACKGROUND

Mrs Lanachan and Mr Lanachan are the parents of [Child 1], [Child 2] (born 25 October 2005) and [Child 3] (born [in] December 2007). A child support case was registered with Services Australia – Child Support (Child Support) in relation to the children in 2016. This application relates to the child support liability in relation to [Child 2] and [Child 3] only as at all times relevant to this application, the case in relation to [Child 1] had ceased as she had already turned 18. Notably, the case in relation to [Child 2] also ceased when she turned 18 on 25 October 2023, however, part of the relevant period in relation to this application relates to before [Child 2] turned 18.
From 19 November 2022 to 25 October 2023, [Child 2] was recorded as being in the 100% care of Mr Lanachan. Child Support’s records show that the care of [Child 3] has changed a number of times with [Child 3] sometimes being in the 100% care of Mrs Lanachan and sometimes being in the 100% care of Mr Lanachan with the result that Mrs Lanachan’s and Mr Lanachan’s roles as child support paying parents and child support receiving parents vary from time to time depending upon whose care [Child 3] is in from time to time.
The Child Support (Assessment) Act 1989 (the Act) provides for an administrative assessment of the child support payable. It uses a formula which contains variables such as the parents’ adjusted taxable incomes and their percentages of care of the children. The Act also provides for a departure from the administrative assessment (commonly termed a change of assessment) in certain circumstances.
On 24 October 2023, Mrs Lanachan lodged a departure application with Child Support seeking a change of assessment on the basis that there were special needs for [Child 2], namely orthodontic expenses, that were not recognised in the usual administrative assessment of child support (a Reason for departure commonly referred to as Reason 2) in relation to which she obtained early release of superannuation…

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 Lanachan and Lanachan (Child support)

Details

AGLC: Lanachan and Lanachan (Child support) [2025] ARTA 940
Case: [2025] ARTA 940
Decision Date: 1 April 2025

CaseChat Overview and Summary

In the matter of Lanachan and Lanachan, the parties are Mrs Lanachan and the Child Support Registrar. This case concerns a child support dispute regarding the financial obligations of Mrs Lanachan towards her children, specifically in relation to her ability to meet her child support obligations due to significant expenses incurred for her child's dental needs. The legal issue before the tribunal was whether a ground exists to depart from the administrative assessment of child support, and if so, whether it would be just and equitable and otherwise proper to make a particular departure determination.

The tribunal found that a ground for departure from the administrative assessment exists under subparagraph 117(2)(b)(ia) of the Child Support (Assessment) Act 1989, as Mrs Lanachan's child had special needs not recognised in the usual costs of children. This ground was established as Mrs Lanachan had paid for significant dental and orthodontic costs for her child. The tribunal further found that it would be just and equitable to depart from the administrative assessment and reduce Mrs Lanachan's adjusted taxable income by $10,457 for the period 1 July 2023 to 30 June 2024 to reflect the true costs incurred, including the tax on withdrawn superannuation funds. The tribunal determined that this departure would not result in hardship to the other parent and would assist Mrs Lanachan in catching up on her child support arrears.

In light of these findings, the tribunal varied the decision under review, decreasing Mrs Lanachan's income used in the assessment by $10,457 for the specified period. This decision results in a reduction of approximately $600 to $800 in the child support assessed to be payable by Mrs Lanachan for that period.

Orders