Maguire and Nicoll (Child support)

This matter concerned an application by the father, Mr. Maguire, for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth) concerning the child support assessment for his child. The mother, Ms. Nicoll, opposed the application. The decision was made by Member Y Webb of the Child Support Special Circumstances Branch.

The primary legal issue before the Member was whether there were special circumstances that would make the administrative assessment of child support unjust and inequitable for the father. Specifically, the Member had to consider whether to depart from the assessment by adjusting the father's taxable income to higher amounts than those recorded by the Australian Taxation Office, and whether to apply conditions to the adjusted taxable income.

The Member's reasoning focused on the father's income history and his capacity to earn. The evidence presented indicated that the father had a history of earning significantly more than his assessed taxable income in the relevant period. The Member applied the principles of assessing a parent's capacity to earn, considering not just declared income but also evidence of actual earnings and earning potential. The Member found that the father's declared income did not accurately reflect his earning capacity, and that to not adjust his income would be unjust and inequitable.

The Member set aside the original decisions under review and substituted them with a new determination. The father's adjusted taxable income was increased to reflect his earning capacity, and conditions were applied to this adjusted income.