Nelmes and Loder (Child support)

The case of *Nelmes and Loder (Child Support)* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The dispute centred on whether the costs of the children's education should be considered in a departure application, and if so, whether these costs significantly affected the parents' ability to maintain the children. The matter was heard by K Dordevic M.

The primary legal issue before the court was whether the costs associated with the children's education constituted a ground for departure from the standard child support assessment. Specifically, the court had to determine if these educational costs were a manner expected by both parents and if they significantly affected the costs of maintaining the children. A further issue was the relevance of the liable parent's earning capacity in the context of such a departure application.

The court reasoned that the costs of education, when they represent a manner expected by both parents and significantly impact the overall cost of maintaining the children, can indeed form a basis for a departure determination. The court applied the principles outlined in the *Child Support (Registration and Collection) Act 1988* (Cth) regarding departure provisions, focusing on the impact of specific expenses on the parents' capacity to maintain their children. The court found that the criteria for a departure determination were met in this instance.

The decision under review was set aside and substituted with a new determination reflecting the court's findings.