Thimbleby and Thimbleby (Child support)

The matter of *Thimbleby and Thimbleby* concerned an application for a departure determination under the *Child Support (Registration and Collection) Act 1988* (Cth). The applicant sought to have the assessed child support payable by the respondent parent reduced, arguing that the respondent had a low capacity to pay the assessed amount due to their financial circumstances. The decision under review was made by the Registrar of the Child Support Agency.

The primary legal issue before the court was whether the Registrar had erred in refusing to make a departure determination. Specifically, the court was required to consider whether the respondent's income, property, and financial resources were such that their capacity to pay the assessed child support was unduly affected, thereby justifying a departure from the standard assessment. This involved an examination of the respondent's business income and overall financial position.

The court found that the Registrar had failed to adequately consider the respondent's actual financial capacity, particularly in relation to their business income. The court applied the principles of child support departure, which allow for adjustments to assessed amounts where specific circumstances, such as a low capacity to pay, are demonstrated. The court determined that the respondent's financial position, as presented, warranted a departure from the assessed child support amount.

Consequently, the court set aside the Registrar's decision and substituted its own determination, ordering a reduced child support payment for the respondent.