Rearick and Strudwick (Child support)

The case of *Rearick and Strudwick* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to have the child support assessment varied based on the income, property, and financial resources of the carer entitled to receive child support, specifically focusing on their earning capacity. The matter came before the court for review of a previous decision.

The primary legal issue before the court was whether the previous decision-maker had erred in their assessment of the carer’s earning capacity and in drawing adverse inferences regarding their financial circumstances. The court was required to determine if the carer had failed to comply with directions issued during the proceedings and, if so, the implications of such non-compliance for the assessment of child support.

The court found that the previous decision-maker had made errors in their assessment. Specifically, the court determined that the carer had failed to provide adequate information regarding their financial position and earning capacity, despite being directed to do so. Consequently, the court was entitled to draw adverse inferences against the carer. The court set aside the previous decision and substituted its own determination, finding that the carer possessed an earning capacity that had not been properly accounted for in the original assessment.