Savage and Kerr (Child support)

The case of *Savage and Kerr* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to depart from the assessed child support amount, arguing that the liable parent possessed income, property, and financial resources that were not adequately reflected in the assessment. The matter came before the court for review of a previous decision.

The primary legal issue before the court was whether a ground for departure was established, specifically concerning the benefits derived by the liable parent from their business. The court was required to determine if these benefits constituted income, property, or financial resources that warranted an adjustment to the child support assessment.

The court found that the liable parent derived significant benefits from their business that were not captured by the standard assessment. Applying the principles of the *Child Support (Registration and Collection) Act 1988*, the court determined that these benefits constituted a financial resource that justified a departure from the assessed amount. The court reasoned that the liable parent had the capacity to pay a higher amount of child support due to these business benefits.

Consequently, the court set aside the previous decision and substituted its own determination, ordering a departure from the assessed child support amount to reflect the liable parent's actual financial capacity.