Lane and Carter-Lane (Child support)

Link copied
Case Copied 32 min read

Lane and Carter-Lane (Child support) [2019] AATA 2542 (5 July 2019)

DIVISION:Social Services & Child Support Division

REVIEW NUMBER:  2018/MC015555

APPLICANT:  Mr Lane

OTHER PARTIES:  Child Support Registrar

Ms Carter-Lane

TRIBUNAL:Member R Anderson

DECISION DATE:  05 July 2019

DECISION:

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

·     The annual rate of child support payable by Mr Lane is to be varied to $21,547 from 25 June 2018 to 17 July 2018; and

·     The annual rate of child support payable by Mr Lane is to be varied to $3,000 from 18 July 2018 to 31 March 2020.

CATCHWORDS

CHILD SUPPORT – departure determination – income, property and financial resources of the liable parent – whether earning capacity is to be considered - 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

  1. Mr Lane and Ms Carter-Lane are the parents of [Child 1] and [Child 2].  According to records of the Department of Human Services – Child Support (the Department), the child support assessment was registered on 22 February 2013. The Department has been responsible for the collection of child support from Mr Lane since that time.

  2. 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 child support 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.

  3. Following termination of his employment from [Employer 1], effective 13 November 2017, the Department accepted an estimate from Mr Lane in respect of his income from 8 January 2018 to 30 June 2018 of $0.  Consequently, the annual rate of child support payable by Mr Lane reduced firstly to the annual rate of $2,780, later replaced by an annual rate of nil. Following acceptance by the Department of an estimate from Mr Lane of $4,000 per annum in respect of the 2018/2019 year, the annual rate of child support payable by Mr Lane remained at nil.

  4. It is open to either parent to lodge an application for a departure from the administrative assessment under Part 6A of the Act if they consider the administrative assessment results in an unfair amount of child support payable by one parent.  Ms Carter-Lane lodged such an application on 25 June 2018, on the basis that the administrative assessment produced an unfair outcome due to the income, property and financial resources available to Mr Lane (Reason 8A). In response, Mr Lane lodged a cross-application in respect of the earning capacity of Ms Carter-Lane (Reason 8B).

  5. While a care decision in respect of [Child 1]…

CaseChat AU logo

Keep reading for free

Create a free CaseChat account to read Lane and Carter-Lane (Child support) and more:

  • Read every judgment in full
  • Ask AI and get answers linked to paragraphs
  • See how each paragraph was cited in later cases
  • Download judgments as PDF or Word
Continue with Google

One click creates your free account or signs you in.

By continuing you agree to the Terms and Privacy Policy.

Details
Case
[2019] AATA 2542
Decision Date

CaseChat Overview and Summary

The case of *Lane and Carter-Lane* concerned a review of a departure determination made by the Child Support Registrar. The dispute involved the liable parent, Mr Carter-Lane, and the other parent, Ms Lane, regarding child support payments. The matter came before the court for a review of the Registrar's decision.

The primary legal issue before the court was whether the Child Support Registrar had erred in its assessment of Mr Carter-Lane's income, property, and financial resources when making the departure determination. Specifically, the court was required to consider whether the Registrar had correctly applied the relevant provisions of the *Child Support (Registration and Collection) Act 1988* (Cth) concerning the consideration of a liable parent's earning capacity.

The court found that the Registrar had failed to properly consider Mr Carter-Lane's earning capacity. The legal principle applied was that under the *Child Support (Registration and Collection) Act 1988*, a liable parent's earning capacity is a relevant factor to be taken into account when determining child support obligations, particularly in circumstances where their actual income may not reflect their full financial capacity. The court determined that the Registrar's decision was not supported by the evidence and did not properly reflect the legislative intent.

Consequently, the court set aside the Child Support Registrar's departure determination and substituted its own decision.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.