Sheadman and Andean (Child support)

This matter concerned an application by the father, Mr Sheadman, for a departure from a child support administrative assessment. The dispute arose because the Child Support Registrar had provisionally assessed the father's adjusted taxable income based on information available, including the fact that he had not lodged tax returns for two years. The father argued that this assessment did not accurately reflect his current financial circumstances, which had been impacted by various factors including his engagement in sessional work, operating a sole trader business, the effects of COVID-19, and his current full-time studies. He also highlighted regular financial assistance received from his parents and Austudy payments.

The primary legal issue before the Tribunal was whether the father had established grounds for a departure from the administrative assessment under the relevant legislation. Specifically, the Tribunal had to determine if the assessment failed to take into account the father's actual financial circumstances, including his income, property, financial resources, and earning capacity, to such an extent that it would be unfair to the father. A key consideration was whether the father's reduced working hours were primarily motivated by a desire to avoid or reduce his child support obligations.

The Tribunal found that the father had provided sufficient evidence to demonstrate that the administrative assessment did not accurately reflect his current financial position. It was persuaded that his reduced working hours were not solely for the purpose of affecting the child support assessment but were also influenced by his studies and the impact of COVID-19 on his business. The Tribunal considered the regular financial assistance received from his parents and Austudy as relevant financial resources. Consequently, the Tribunal set aside the original administrative assessment and substituted it with a new assessment that took into account the father's current circumstances.