Potter and Jarrett (Child support)

The matter of *Potter and Jarrett* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to have the assessed child support payable by the liable parent, Mr Jarrett, varied on the basis of his income, property, and financial resources, specifically relating to his business income. The decision under review was set aside and substituted by the court.

The primary legal issue before the court was whether the liable parent's actual income, derived from his business, was significantly different from the income assessed by the Child Support Agency. This required the court to consider the nature of the business income and whether it should be attributed to the liable parent for the purposes of child support assessment, thereby justifying a departure from the standard assessment.

The court's reasoning focused on the evidence presented regarding the liable parent's business activities and the income generated. It applied the principles governing departure determinations, which allow for adjustments to child support assessments when the standard assessment would be unfair due to specific circumstances, such as a discrepancy between assessed income and actual financial capacity. The court considered the extent to which the business income was available to the liable parent and whether it reflected his true financial resources. The court ultimately set aside the previous decision and substituted its own determination.