Liang and Lam (Child support)

[2018] AATA 529

Liang and Lam (Child support) [2018] AATA 529 (8 February 2018)

DIVISION:Social Services & Child Support Division

REVIEW NUMBER:  2017/SC012933

APPLICANT:  Mr Liang

OTHER PARTIES:  Child Support Registrar

Ms Lam

TRIBUNAL:Member K Timbs

DECISION DATE:  8 February 2018

DECISION:

The Tribunal affirms the decision under review.

CATCHWORDS

Child Support – Non-agency payments for non-periodic maintenance – Payments not made – Refusal to credit - Decision under review affirmed

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 Liang and Ms Lam are the parents of [Child 1] and [Child 2]. At relevant times, the Department of Human Services made child support assessments. The annual rate is equal to the periodic amount of $6,000 a month provided for in a binding child support agreement.

2. Mr Liang is the parent liable to pay child support. The assessment has been registered on the Child Support Register for collection by the Department. On 17 June 2017, the Department credited various amounts totalling $4,867 against his liability in the Register.

3. On 9 November 2017, an Objections Officer of the Department allowed Ms Lam’s objection to that decision and decided not to credit those amounts.

4. On 17 November 2017, Mr Liang applied for review of that decision. The Tribunal heard the application for review on 8 February 2017.

ISSUES

1. The Registrar registers child support assessments under the Child Support (Registration and Collection) Act 1988. Once registered, the liability becomes a debt to the Commonwealth (section 30).

2. The Registrar must credit certain amounts paid by the payer to the payee or to another person against the liability of the payer recorded in the Register (sections 71 and 71A). To deal with Mr Liang’s application for review, the Tribunal considered whether the amounts referred to above must be credited against his child support debt recorded in the Register.

CONSIDERATION

Evidence considered

1. The Tribunal considered documents relevant to the decision under review provided by the Department and Mr Liang and Ms Lam gave evidence at hearing.

Payments by Mr Liang

1. Both Mr Liang and Ms Lam agreed that Mr Liang did not make any of the payments referred to above that totalled $4,867. Rather, Ms Lam made the payments and it follows sections 71 and 71A do not apply.

2. In addition to the periodic amount of $6,000, the child support agreement obliges Mr Liang to pay non-periodic amounts for other items such as school fees, child care and educational activities. The assessment does not include those non-periodic amounts and the Registrar has no power to collect them.

3. Ms Lam said she contacted the Department and asked it to collect some of those amounts. She understood from her conversation with an officer of the Department that it could collect the amounts if she reported them as non-Agency payments (the term used for amounts credited under sections 71 and 71A). This misunderstanding led her to report payments she made for items such as childcare. The Department credited the amounts reported by Ms Lam and reduced Mr Liang’s liability for the month of July by $4,867.

4. After the Objections Officer discovered Ms Lam’s error and allowed her objection, it added $4,867 back to his account. His liability for December 2017 increased by the same amount as his liability for July 2017 had reduced.

5. Mr Liang’s submission is that the Department required him to reimburse Ms Lam for non-periodic amounts when it added $4,867 back to his child support debt. That is not the case and his submission is misconceived.

DECISION

The Tribunal affirms the decision under review.