Lannigan and Lannigan (Child support)

This matter concerned an application by Mr Lannigan for a departure from a child support assessment. Mr Lannigan sought a review of a decision by the Child Support Registrar that refused his application. The Administrative Appeals Tribunal (AAT) considered the circumstances of Mr Lannigan and Ms Lannigan, the parents of two children, who were in Ms Lannigan's care. Previous departure determinations had been made in this matter.

The primary legal issues before the Tribunal were whether there were grounds to depart from the existing child support assessment, and if so, whether it would be just and equitable to make such a departure. Specifically, the Tribunal had to consider if Mr Lannigan's income, property, and financial resources, or his earning capacity, constituted special circumstances warranting a departure under section 117(2)(c) of the *Child Support (Assessment) Act 1989*. The Tribunal also had to assess whether any proposed departure would be just and equitable, taking into account the needs of the children and the financial circumstances of both parents.

The Tribunal found that the cessation of Mr Lannigan's business in March 2020 constituted a significant change in circumstances, impacting his income and rendering the existing assessment no longer reflective of his ability to pay child support. This provided a ground for departure under section 117(2)(c)(ia) of the Act. While Mr Lannigan's income had significantly reduced due to business failure and he was receiving JobKeeper payments, the Tribunal noted that he had received substantial proceeds from the sale of his home in June 2020, which could have been used to fund child support payments. The Tribunal also considered that Mr Lannigan's unemployment was due to factors outside his control and not an attempt to affect the child support assessment, thus not meeting the strict criteria for departure based on earning capacity under section 117(2)(c)(ib).

The Tribunal set aside the decision under review and substituted its own decision. It determined that Mr Lannigan's adjusted taxable income should be varied to $39,000 per annum from 1 March 2020 to 28 March 2021. Furthermore, the Tribunal terminated the increase of $500 to his annual rate of child support payable, effective from 1 March 2020.