Newton and Newton (Child support)

This matter concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth) brought by the liable parent, Mr Newton, against the child support assessment made in relation to his child. The application was heard by the Child Support Registrar, whose decision was subsequently reviewed by the Administrative Appeals Tribunal.

The primary legal issue before the Tribunal was whether the liable parent had established a ground for departure from the child support assessment, specifically by demonstrating that his earning capacity had been affected by a relevant factor. The Tribunal was required to consider whether the criteria for determining earning capacity were satisfied and, if so, whether this warranted an adjustment to the assessed child support amount.

The Tribunal found that the liable parent had indeed satisfied the criteria for determining his earning capacity, establishing a ground for departure. The reasoning focused on the impact of a specific factor on his ability to earn income, which justified a variation of his adjusted taxable income for the purposes of child support. The Tribunal applied the principles outlined in the *Child Support (Registration and Collection) Act 1988* concerning departure determinations and the assessment of earning capacity.

The Tribunal set aside the decision under review and substituted its own decision, varying the adjusted taxable income of the liable parent and consequently altering the child support assessment.