Riehle and Saunders (Child support)

This matter concerned an application by the liable parent, Mr Riehle, for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The dispute centred on whether the liable parent's income, property, and financial resources, as well as his earning capacity, constituted grounds for departing from the assessed child support amount. The case was heard by Member J Thomson.

The primary legal issue before the court was whether the liable parent had established a ground for departure under section 117 of the *Child Support (Registration and Collection) Act 1988*. Specifically, the court had to determine if the liable parent's actual financial circumstances, including his income, property, and financial resources, or his earning capacity, were such that the assessed child support amount was not fair and just.

Member J Thomson reasoned that the liable parent had indeed established a ground for departure. The court found that the liable parent's earning capacity was significantly higher than his actual income, and that he had deliberately reduced his income and failed to utilise his full earning capacity. This conduct was considered to be a relevant factor in determining whether the assessed child support amount was fair and just. The court applied the principles that a parent cannot deliberately reduce their income or fail to utilise their earning capacity to avoid child support obligations.

The decision to depart from the assessed child support amount was made, and the original decision under review was set aside and substituted with a new determination reflecting the court's findings.