Pointing and Pointing (Child support)

The case of *Pointing and Pointing* concerned a dispute over child support payments, brought before the court for review of a departure determination. The primary issue revolved around the assessment of the income and financial resources of one of the parents, who conducted business through a company. Specifically, the court examined payments made as wages to associated persons, which were not conducted at arm's length, and the deductibility of child care costs.

The court was required to determine whether the initial departure determination accurately reflected the parent's true financial capacity for child support purposes, particularly in light of the non-arm's length transactions and the claimed child care expenses. This involved scrutinising the nature of the payments made to associated persons and the legitimacy of the child care costs claimed as deductions.

In its reasoning, the court applied principles relating to the assessment of income and financial resources under the *Child Support (Registration and Collection) Act 1988*. It considered the need to look beyond the formal structure of a company to the substance of financial arrangements, especially where transactions are not at arm's length. The court found that the payments to associated persons were not genuine expenses incurred in the production of assessable income and that the child care costs were not deductible in the circumstances. Consequently, the court set aside the original departure determination and substituted its own, reflecting a revised assessment of the parent's income.