Muraco and Muraco (Child support) - [2024] AATA 2019

Muraco and Muraco (Child support) [2024] AATA 2019 (3 June 2024)

DIVISION: Social Services & Child Support Division

REVIEW NUMBER:  2023/MC026607
APPLICANT:  Mr Muraco
OTHER PARTIES:  Child Support Registrar
Ms Muraco

TRIBUNAL:Member D Lambden
DECISION DATE: 3 June 2024
DECISION:

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

(a)The objection officer’s decision dated 4 November 2022 is to remain unchanged.
(b)For the period 1 August 2023 until 30 November 2023, Mr Muraco’s adjusted taxable income shall be set at $118,767.
(c)For the period 1 August 2023 until 31 December 2023, the assessment otherwise payable by Mr Muraco shall be increased by $15,556 (being a contribution of $1,642 towards [Child 1]’s orthodontics and $13,914 towards the children’s 2024 tuition fees).
(d)For the period 1 January 2024 until 31 July 2024, the assessment otherwise payable by Mr Muraco shall be increased by $15,904 (being a contribution of $1,642 towards [Child 1]’s orthodontics and $14,262 towards the children’s 2024 tuition fees).
(e)For the period 1 August 2024 until 31 December 2024, the assessment otherwise payable by Mr Muraco shall be increased by $14,262 (being a contribution of $14,262 towards the children’s 2024 tuition fees).
(f)For the period 1 January 2025 until 31 December 2025, the assessment otherwise payable by Mr Muraco shall be increased by $15,235 (his $14,619 contribution towards the children’s 2025 tuition fees and $616 towards [Child 1]’s orthodontic treatment).

CATCHWORDS
CHILD SUPPORT – change of assessment – there are special circumstances – mutual expectation that the children will be privately educated – special needs of one child – income, property and financial resources – hardship will be caused to mother – otherwise proper to depart from the administrative assessment – 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

Mr Muraco and Ms Muraco are the parents of [Child 2] and [Child 1] (the children) in respect of whom Mr Muraco has a child support liability. For the purposes of the child support assessment the children are recorded as being in the above primary care of Ms Muraco.
The child support assessment commenced from 6 March 2022 and is currently registered for collection by Services Australia – Child Support (Child Support).
On 4 November 2022 an objection officer made the following decision:

The decision made by an objections officer on 14 July 2022 remains unchanged as follows:
§ For the period 6 March 2022 to 5 March 2023, the annual rate payable by Mr Muraco is increased by $5,693.00 to reflect 50% of the balance of [Child 2] and [Child 1]’s private tuition fees.
For the period 1 November 2022 to 31 October 2023, the annual rate Mr Muraco is required to pay increases…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Muraco and Muraco (Child support)

Details

AGLC: Muraco and Muraco (Child support) [2024] AATA 2019
Case: [2024] AATA 2019
Decision Date: 3 June 2024

CaseChat Overview and Summary

The Administrative Appeals Tribunal considered an application by the mother for a change of assessment regarding child support payable by the father. The dispute concerned whether special circumstances existed that would justify departing from the standard child support assessment.

The Tribunal was required to determine whether the mutual expectation of the parties that the children would be privately educated, coupled with the special needs of one child and the hardship that would be caused to the mother if the standard assessment were maintained, constituted special circumstances warranting a departure from the administrative assessment.

The Tribunal found that the parties had a clear mutual expectation that the children would receive a private education, which was a significant factor. Furthermore, the specific needs of one child and the demonstrable financial hardship the mother would face were considered to be exceptional circumstances. Applying the principles for departing from a child support assessment, the Tribunal concluded that it was otherwise proper to make a departure. The decision under review was set aside and substituted with a new assessment reflecting these considerations.

Orders