Tallents and McCloud (Child support)

This matter concerned an application by the liable parent, Mr Tallents, for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The dispute centred on whether the liable parent's earning capacity should be considered in the assessment of child support payable to the other parent, Ms McCloud. The application was heard by a Senior Member of the court.

The primary legal issue before the court was whether the liable parent had established a ground for departure from the standard child support assessment. Specifically, the court was required to determine if the liable parent's earning capacity, which was alleged to be significantly higher than his actual income, constituted a relevant factor under the legislation that warranted a departure.

The Senior Member considered the provisions of the *Child Support (Registration and Collection) Act 1988* relating to departure determinations, particularly those concerning the income, property, and financial resources of a parent, and their earning capacity. The court found that the liable parent had indeed demonstrated that his earning capacity was greater than his actual income, and that this difference was substantial. This finding established a ground for departure. The Senior Member then exercised the discretion to depart from the assessment, substituting a new assessment that reflected the liable parent's earning capacity.