Tribunal: Member Kate Buxton

The Child Support Agency (CSA) uses a statutory formula to calculate the amount of child support payable. The formula includes a number of variables including the parents’ adjusted taxable incomes. This review concerned the applicant’s adjusted taxable income used in the child support assessment to calculate the amount of child support payable by him to the other parent in the period beginning 1 July 2018.

The applicant elected to estimate his 2017-18 adjusted taxable income to assess the amount of child support payable up until 30 June 2018. After this date, the estimate ceased to apply and the CSA had to use the applicant’s 2016-17 adjusted taxable income to determine the child support payable from 1 July 2018. The applicant lodged his 2017-18 income tax return in October 2018 and the CSA used this to assess the child support payable from that point forward.

The applicant objected to CSA’s decision to use his 2016-17 adjusted taxable income in the period in question, claiming it was unfair because it included money he had inherited from his father. An objections officer of the CSA disallowed the objection and the applicant applied to the AAT for a review of the decision.

The AAT has the power to dismiss an application for review for a number of reasons including if it has no reasonable prospect of success.[1] The AAT found that this application had no reasonable prospect of success. The law required the CSA to use the applicant’s 2016-17 adjusted taxable income when the period of his estimate election expired on 30 June 2018 and he had not made a further election.

The AAT dismissed the application.

Read the full decision on AustLII.

 

[1] Section 42B of the Administrative Appeals Tribunal Act 1975.