Law and Law (Child support)

This matter concerned an application for review of a child support departure determination made by Mr Law against Ms Law. The Tribunal was required to consider whether the existing formula assessment of child support would result in an unjust and inequitable determination of the level of financial support provided by the liable parent for the child, due to the income, property, and financial resources of either parent.

The Tribunal's task was to determine if a ground for changing the assessment existed under section 117(2)(c)(ia) and (ib) of the Child Support (Assessment) Act 1989. In doing so, the Tribunal considered the objects of the Act, particularly the principle that children should receive a proper amount of support from their parents according to their capacity, and that parents with similar financial capacity should provide similar levels of support. The court outlined the standard child support formula process, which involves calculating adjusted taxable incomes, deducting amounts for self-support and other children, determining the costs of the child based on age and combined incomes, and then allocating a portion of those costs to each parent according to their share of the combined child support income.

The Tribunal found that the ground for departure was established. The decision under review was set aside and substituted.