Saunderson and Saunderson (Child support)

This matter concerned an application by Mr Saunderson for review of a decision by the Child Support Registrar to vary an administrative assessment of child support. Mr Saunderson is the liable parent for two children, whose primary care is with Ms Saunderson. The dispute arose from Ms Saunderson's application for a change of assessment, alleging grounds related to Mr Saunderson's income, property, and financial resources. The Administrative Appeals Tribunal (AAT) was required to determine whether a ground for departure from the administrative assessment existed, and if so, whether it would be just and equitable to make a departure determination.

The tribunal considered whether the circumstances warranted a departure from the standard child support assessment under section 117(2)(c)(ia) of the Child Support (Assessment) Act 1989, specifically focusing on reason 8A, which relates to the income, property, and financial resources of the parties. This involved examining Mr Saunderson's asserted limited income and lack of interest in a company and business operated by his wife, contrasted with evidence suggesting his significant involvement and potential benefit from these entities. The tribunal also had regard to the Child Support Guide, which outlines principles for assessing income, including the concept of income alienation and the potential to "lift the corporate veil" when a person operates a business through an intermediary.

The tribunal found that Mr Saunderson's assertions regarding his lack of financial interest in the company and business were not credible. It noted his history as a director and shareholder, his continued involvement in the business's day-to-day operations, and his past role as a signatory on business accounts, including making cash withdrawals. The tribunal concluded that Mr Saunderson did have a relevant interest in the company and its business, and that the financial resources generated by the business were relevant to his child support assessment. Consequently, the tribunal set aside the Registrar's decision and substituted its own, varying Mr Saunderson's adjusted taxable income to $100,000 per annum for the period from 1 October 2019 until a terminating event for the youngest child.