Sterling and Sterling (Child support)

This matter concerned an appeal to the Child Support Special Powers Division of the Federal Circuit and Family Court of Australia regarding a departure determination made under the *Child Support (Registration and Collection) Act 1988* (Cth). The parties, referred to as Sterling and Sterling, were in dispute over the assessment of child support obligations.

The primary legal issue before the court was whether the Registrar of Child Support had erred in their assessment of the adjusted taxable incomes of both parents when making a departure determination. Specifically, the court was required to consider whether the income, property, and financial resources of the parents, particularly in relation to business income, had been adequately taken into account.

The court found that a ground for departure had been established. It reasoned that the Registrar’s initial assessment did not sufficiently account for the true financial positions of both parties, particularly concerning their business income. Consequently, the court determined that the adjusted taxable incomes of both parents should be varied to reflect a more accurate financial reality. The court set aside the original decision and substituted its own determination.