Rendell and Gedye (Child support)

This matter concerned an appeal by Rendell (the applicant) against a departure determination made by the Child Support Registrar concerning child support payable by Gedye (the respondent). The applicant sought to have the Registrar's decision set aside and substituted with a new determination.

The primary legal issue before the court was whether the Registrar had erred in refusing to make a departure determination under section 117 of the *Child Support (Registration and Collection) Act 1988* (Cth). Specifically, the court had to consider whether the respondent's earning capacity, rather than his actual income, was a relevant factor to be taken into account in determining whether to depart from the assessment.

The court found that the Registrar had failed to properly consider the respondent's earning capacity as a ground for departure. It was held that the Registrar's focus solely on the respondent's actual income, without adequately assessing his ability to earn, constituted an error. The court applied the principle that a parent's earning capacity is a relevant consideration when determining child support obligations, particularly where there is evidence suggesting that the parent is deliberately under-earning.

Consequently, the court set aside the Registrar's departure determination and substituted it with its own determination, finding that a departure was justified based on the respondent's earning capacity.