Pearce and Lacey (Child support)

[2020] AATA 2682

Pearce and Lacey (Child support) [2020] AATA 2682 (11 June 2020)

DIVISION:Social Services & Child Support Division

REVIEW NUMBER:  2020/SC018860

APPLICANT:  Mr Pearce

OTHER PARTIES:  Child Support Registrar

Ms Lacey

TRIBUNAL:Member S Letch

DECISION DATE:  11 June 2020

CATCHWORDS

CHILD SUPPORT – dismissal of application for review - particulars of the administrative assessment – adjusted taxable income - no reasonable prospect of success - application for review dismissed

Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been omitted 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.

DISMISSAL OF APPLICATION FOR REVIEW:

1. The Tribunal wrote to Mr Pearce in the following terms on 20 May 2020:

   As discussed yesterday, child support assessments are initially assessed on each parent’s taxable incomes from year to year. If a parent’s current income is significantly less than their last taxable income (which would be used in the assessment) they can lodge an estimate of their current income with Child Support.

   If either parent believes that does not provide a fair outcome they can apply for a change of assessment (departure) with Child Support. A change of assessment (departure) decision can then be made which sets a parent’s income for a period.

   In your case, a change of assessment (departure) decision was made on 21/12/18 which set the income to be used for you at $242,000 for the period 11/10/17 – 11/10/20. Therefore if your income is less than the income set you cannot lodge an estimate of income with Child Support until 12/10/20 when the change of assessment (departure) decision has ended.

   To change the income being used for you before 12/10/20 you appropriately made a further change of assessment (departure) application with Child Support asking for the income which had been set to be changed. Child Support made a decision on 2/3/20 not to change the income which has been set.

   You can object in writing to Child Support asking for the decision of 2/3/20 to be reviewed. You will also need to request an extension of time within which to lodge the objection explaining why you did not object earlier. That objection decision could change the income being used for you. If you are dissatisfied with that objection decision in due course you can ask the tribunal to review that decision.

   The decision currently before the tribunal for review is the income to be used from 12/10/20. As mentioned that is correctly your 2018/19 taxable income at this stage. However you can lodge an estimate of income with Child support from 12/10/20 if your income has reduced significantly. Consequently the current application before the tribunal cannot address the issue you have or achieve the outcome you seek.

   Given the above, please confirm whether you agree to the tribunal application being dismissed and not proceeding.

.

1. Mr Pearce responded in writing to advise that he wished the application to proceed.

1. The Tribunal respectfully agrees with analysis set out in the Tribunal’s correspondence to Mr Pearce on 20 May 2020. This particular application concerns the very narrow issue of the application under the child support formula provisions of Mr Pearce’s 2018/19 adjusted taxable income with effect from 12 October 2020. That decision is clearly correct and Mr Pearce cannot achieve the outcome he seeks from the current application; he has been properly advised of other options available to him.

2. The Tribunal is satisfied that the application for review has no reasonable prospects of success and dismisses the application for review pursuant to subsection 42B(1) of the Administrative Appeals Tribunal Act 1975 (AAT Act).