Nichols and Nichols (Child support)

The case of *Nichols and Nichols (Child Support)* concerned an application to review a child support departure determination made by the Registrar. The applicant, Mr Nicholas, sought to set aside the Registrar's decision, which had assessed his child support liability based on his income and financial resources, including benefits derived from a family trust and his business. The respondent, Ms Nichols, sought to uphold the Registrar's determination.

The primary legal issue before the court was whether the Registrar had erred in her assessment of Mr Nicholas's child support liability. Specifically, the court was required to determine if the Registrar had correctly considered all relevant factors, including Mr Nicholas's income, property, and financial resources, particularly those derived from his business and a family trust, when making the departure determination.

Senior Magistrate Freeman found that the Registrar had failed to adequately consider the full extent of Mr Nicholas's income and financial resources. The court reasoned that the benefits Mr Nicholas derived from his business and the family trust constituted assessable income for child support purposes, even if not formally distributed. The court applied the principles of the *Child Support (Assessment) Act 1989* (Cth), which require consideration of all relevant financial circumstances of both parents when making a departure determination.

The court set aside the Registrar's departure determination and substituted its own. The substituted determination adjusted Mr Nicholas's child support assessment to reflect the income and financial resources that had not been fully accounted for in the original decision.