Warnock and Warnock (Child support)

The Administrative Appeals Tribunal considered the dispute between the liable parent, Mr. Warnock, and the payee parent, Ms. Warnock, concerning the particulars of a child support administrative assessment. The core of the disagreement related to the adjusted taxable incomes used for past assessment periods.

The Tribunal was required to determine whether the provisional adjusted taxable incomes for the liable parent for past periods should be changed, specifically in relation to the treatment of business income and deductions, and the implications of the non-lodgement of tax returns.

The Tribunal affirmed the decisions under review. It applied principles relating to the assessment of income for child support purposes, particularly where business income is involved and tax returns have not been lodged. The Tribunal considered the evidence presented regarding the liable parent's business activities and expenses, and the appropriate method for calculating adjusted taxable income in such circumstances, ultimately finding that the provisional assessments were correct.