Pecci and Deacon (Child support)

The matter of *Pecci and Deacon* concerned an appeal to the Child Support Registrar regarding a departure determination. The primary dispute involved the earning capacity of the father, Mr. Deacon, who had transitioned from being a business owner to an employee. The mother, Ms. Pecci, sought a departure from the child support assessment, arguing that Mr. Deacon's change in occupation significantly impacted his earning capacity and, consequently, his child support obligations. The decision was made by Member M Kennedy.

The central legal issue before the Registrar was whether Mr. Deacon's change of industry and occupation from a business owner to an employee constituted a ground for departure from the child support assessment under the relevant legislation. Specifically, the Registrar had to determine if this change was undertaken with the major purpose of reducing his child support liability, or if it was a genuine change in his employment circumstances that warranted consideration for a departure.

Member Kennedy reasoned that for a departure determination to be made, the change in circumstances must be significant and demonstrably undertaken with the purpose of reducing child support. In this instance, the Registrar found that while Mr. Deacon had indeed changed his employment status, there was insufficient evidence to establish that the *major purpose* of this change was to avoid his child support obligations. The Registrar applied the principles that a parent is generally assessed on their actual or potential earning capacity, and a voluntary reduction in income, unless primarily motivated by a desire to reduce child support, does not automatically trigger a departure.

The Registrar affirmed the original decision, finding no grounds for a departure determination. Consequently, the child support assessment remained unchanged.