Olsen and Hatter (Child support)

This matter concerned an appeal by the father, Olsen, against a decision of the Child Support Registrar. The dispute centred on whether certain payments made by the father for the child's orthodontic treatment should be credited against his child support liability. The Registrar had refused to credit these payments, leading to the father's appeal to the court.

The primary legal issue before the court was whether the payments made by the father for orthodontic treatment constituted "prescribed payments" within the meaning of the relevant legislation, and if so, whether the Registrar had erred in exercising her discretion to refuse to credit these payments. Specifically, the court had to consider the circumstances under which a payment for orthodontic treatment could be considered a prescribed payment and the factors relevant to the Registrar's discretion to refuse credit for such payments.

The court considered the provisions of the *Child Support (Registration and Collection) Act 1988* (Cth) and the *Child Support Regulations 1988* (Cth) concerning prescribed payments. It was held that payments for orthodontic treatment could, in principle, be prescribed payments. However, the court affirmed that the Registrar retained a discretion to refuse to credit such payments in particular circumstances. The court found that the Registrar had not adequately considered all relevant factors when exercising this discretion, particularly the father's financial capacity and the overall benefit to the child. The court emphasised that the discretion must be exercised judicially, taking into account the purpose of child support legislation, which is to ensure that both parents contribute to the financial needs of their children.

The court allowed the appeal, setting aside the Registrar's decision. The matter was remitted back to the Registrar for reconsideration of the father's application to credit the orthodontic payments, with directions to properly exercise the discretion in accordance with the principles outlined by the court.