Radeke and Valleau (Child support)

[2018] AATA 3985

Radeke and Valleau (Child support) [2018] AATA 3985 (23 August 2018)

DIVISION:Social Services & Child Support Division

REVIEW NUMBER:  2018/HC014302

APPLICANT:  Ms Radeke

OTHER PARTIES:  Child Support Registrar

Mr Valleau

TRIBUNAL:Member P Noonan

DECISION DATE:  23 August 2018

DECISION:

The decision under review is affirmed.

CATCHWORDS
Child support - Income estimate - Whether the estimate should have been refused - Income estimate was correctly accepted - Decision under review affirmed

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

REASONS FOR DECISION

BACKGROUND

1. This review relates to the child support case between Ms Radeke and Mr Valleau. The review is about whether the Department of Human Services (the Department) should have accepted an income estimate of $0 on 3 April 2018.

2. On 6 April 2018 Ms Radeke objected to the decision of the Department to accept Mr Valleau’s income estimate. Her objection was disallowed by an objections officer on 8 June 2018.

3. Ms Radeke subsequently applied to the Administrative Appeals Tribunal (the Tribunal) for an independent review. The application was heard in Melbourne on 23 August 2018. Both Ms Radeke and Mr Valleau participated by conference telephone. They both gave evidence on affirmation. The Child Support Registrar did not participate in the hearing.

ISSUES

1. The statutory provisions relevant to this review are in the Child Support (Assessment) Act 1989 (‘the Act’).

2. The issues which arise in this case are:

   ·     Is the estimate less than the likely actual income?

   ·     Should the estimate have been accepted or refused?

CONSIDERATION

Issue 1 – Is the estimate less than the likely actual income?

1. An estimate may be rejected if it is less than what the Child Support Registrar (or the tribunal on review) considers is likely to be the actual amount of the parent’s adjusted taxable income: paragraph 63AA(2)(a) of the Act.

2. Mr Valleau previously informed the Department that his income estimate was made on the basis that he works on a contract basis and that he had stopped working due to work not being available and to take care of the children. He had no annual leave to utilise. The Department subsequently undertook inquiries to ascertain if he had a current employer and also with the Australian Taxation Office systems to ascertain if he had a current income. These inquiries did not indicate that Mr Valleau had either a current employer or an income.

3. Ms Radeke submitted that in her view Mr Valleau remained employed. The Tribunal noted that in May 2018 Mr Valleau had provided a further significantly increased income estimate to the Department.

4. When a person provides an estimate, they are required merely to forecast their taxable income and any other components that can form part of their adjusted taxable income. On the basis of the information before the Department, at the time the decision under review was undertaken, the Tribunal concluded that Mr Valleau’s income estimate was likely to correlate with his actual adjusted taxable income.

Issue 2 – Should the estimate have been accepted or refused?

1. The Tribunal considered that Mr Valleau’s estimate of income fell within the relevant parameters set out under section 60 of the Act. As the Tribunal has found that the estimate was likely to be in accordance with Mr Valleau’s actual adjusted taxable income, at the time it was lodged, it follows that the estimate was correctly accepted by the Department.

DECISION

The decision under review is affirmed.