Sabella and Tadeo (Child support)

This matter concerned an appeal by the respondent, Sabella, against a departure determination made by the Child Support Registrar. The Registrar had determined that the liable parent, Tadeo, should be assessed for child support based on his earning capacity rather than his actual income. Sabella sought to have this departure determination confirmed.

The primary legal issue before the court was whether the criteria for assessing a liable parent on their earning capacity, as set out in section 117 of the *Child Support (Registration and Collection) Act 1988* (Cth), were met in Tadeo's circumstances. Specifically, the court had to consider if Tadeo had intentionally reduced his income or was refusing or failing to take reasonable steps to obtain an increase in his income.

Justice Thomson M found that the evidence supported the Registrar's conclusion that Tadeo had intentionally reduced his income. The court noted that Tadeo had ceased full-time employment and was working in a casual capacity, which resulted in a significantly lower income than he was capable of earning. This reduction in income was not for a legitimate reason, and therefore, the criteria for departure were satisfied. The court confirmed the Registrar's decision to assess Tadeo on his earning capacity.