CHILD SUPPORT - particulars of the administrative assessment - income estimate - reassessment - actual adjusted taxable income - disability support pension - extension of time - income amounts erroneously added twice in Australian Taxation Office records - decision under review set aside and remitted

Names used in all published decisions are pseudonyms. Any references appearing in square brackets indicate that information has been omitted from this decision and replaced with generic information pursuant to subsection 16(2AB) of the Child Support (Registration and Collection) Act 1988.

1. Mr Jook and Ms Maxwell are the parents of [Child A] (born [in] July 1998) and [Child B] (born [in] December 1999). A case was registered with Services Australia - Child Support (Child Support) for the assessment of child support on 2 April 2003. On 24 July 2015 Mr Jook contacted Child Support to provide an estimate of his income for the 2015-16 financial year. Mr Jook explained that he had been in receipt of disability support pension from 2012 and his only income was pension of $941.68 per fortnight.
2. Mr Jook's estimate of income was accepted the same day. Both parties were notified by letters dated 24 July 2015 that the annual rate of child support payable by Mr Jook with effect from 24 July 2015 was $399, based on Mr Jook's estimate of income of $24,599 (annualised). The child support assessment ended on 12 December 2017, as the youngest child of the assessment ([Child B]) turned 18 the following day.
3. On 29 June 2018, Mr Jook's child support liability for the period 24 July 2015 to 30 June 2016 was reassessed on the basis of his actual adjusted taxable income of $42,726 in that period. The parties were notified that as a result of the reconciliation of the entitlement for that period Mr Jook owed Ms Maxwell a further amount of child support of $5,581.29. On 20 December 2019 Mr Jook's child support liability was again reassessed and a determination made that his actual adjusted taxable income was $42,728. The parties were notified that as a result of the further reassessment Mr Jook owed Ms Maxwell child support of $5,582.37. In addition to this Mr Jook was subject to a penalty of $555.00.
4. On 4 January 2020 Mr Jook lodged a formal objection to the decision of 20 December 2019. On 17 April 2020, an objections officer of Child Support disallowed the objection, which had the effect of affirming the original decision.
5. By application received on 11 April 2025, Mr Jook asked this Tribunal to review the decision of the objections officer. On 13 June 2025 Mr Jook was granted an extension of time in which to apply for review of the objections officer's decision. On 8 September 2025, the Tribunal conducted a hearing at which Mr Jook gave evidence by MS Teams audio. Ms Maxwell had elected not to attend the hearing. The Tribunal had before it the relevant documents from Child Support, which had been copied to the parties.

1. The legislative provisions relevant to this decision are contained in the Child Support (Assessment) Act 1989 (the Act). The Act sets out the statutory formula for the calculation of child support, which takes into account each parent's adjusted taxable income and the level of care they provide for each child of the assessment.
2. Generally the adjusted taxable income used in the assessment is that which has been assessed by the Australian Taxation Office for the previous income year as their taxable income. Section 43 of the Act provides that in working out a person's adjusted taxable income, a number of other components are added to the taxable income. Of relevance in this case is paragraph 43(e) which adds: "the total of the tax free pensions or benefits received by that parent in that year of income".
3. A person may make an estimate of income for a financial year, or part of a year, if the provisions in section 60 of the Act are met. If a person has not made an estimate for the year of income and wishes to estimate their income during the financial year, after the first day of the financial year, they can make an income estimate for part of the year (subsection 60(3)). In providing an estimate for part of the year, the person must inform Child Support of their estimated income for the remaining period (paragraph 60(3)(a)), which is the period that starts when the estimate election is made and ends at the end of the financial year (subsection 60(4)).
4. Child Support may refuse to accept an income estimate for part of a year of income if the parent's partial year income amount is less than what Child Support considers is likely to be the parent's actual adjusted taxable income for the remaining period (subsection 63AA(2)). Unless the income estimate is refused, Child Support must apply the estimate to the administrative assessment for a period beginning on the day the election is made and ending on the last day of the income year or, if the estimate is subsequently revoked and replaced by another estimate, on the start day for the later election (section 61). In this case, Mr Jook's estimate of his adjusted taxable income was applied to the assessment from 24 July 2015.
5. Section 64 of the Act then provides that, once the person's adjusted taxable income for the relevant tax year is known, the liability for the period covered by the estimate is reassessed, having regard to the actual adjusted taxable income for that period.
6. The basis of Mr Jook's case is that he has been in receipt of disability support pension since 2012. The Tribunal asked him whether he received any other form of income (for instance, from part-time employment) in the 2015-16 year and Mr Jook said he did not. The Tribunal put to Mr Jook that the Child Support documents show a tax notice of assessment issued in his name on 22 January 2019 that indicated that he had a taxable income assessed as $21,291. Mr Jook said that as he had no income other than the disability support pension he wasn't required to lodge income tax returns and had not done so for many years. Mr Jook maintained that he had been disputing this decision for years. He called Child Support as well as the Australian Taxation Office. Finally a Child Support officer by the name of [Mr A] told him that they had confirmed that his income amounts had been added twice in the Australian Taxation Office records, but they were unable to fix the error.
7. The Tribunal was satisfied that Mr Jook was a reliable witness. His Centrelink records (tax payment summary screen) indicate that he received $21,090 in pension during the 2015-16 year, of which $0.00 was taxable. The Tribunal notes that the maximum single rate of disability support pension was $860.20 per fortnight as at 24 July 2015 (not counting rent assistance), therefore it would appear that Mr Jook was paid the maximum rate of disability support pension throughout the relevant year. Had he actually received employment or any other income of some $400 a week, his disability support pension would have been significantly reduced.
8. The Tribunal had some concerns about the evidence used by Child Support in making its decision. The Tribunal notes that the initial reconciliation of 29 June 2018 recorded Mr Jook's adjusted taxable income for the year as $43,668, made up of the following components:
   • Disability support pension $21,090
   • [redacted] Super fund (taxed comp) $825
   • [redacted] Super fund (taxed component) $19,860
   • [Bank 1] (interest) $578

However the second reconciliation of 20 December 2019 listed the following:

• Disability support pension $21,090
  • Modified taxable income amount $22,580

1. The total adjusted taxable income in the second reassessment is $43,670. There is no explanation on the evidence before the Tribunal as to the reason for the difference of $2 or what the components of the $22,580 are. Mr Jook has also stated that a Child Support officer ([Mr A]) told him that the error in his record had been discovered. There is no record of any such communication on the documents before the Tribunal, however the Tribunal accepts that this conversation occurred.
2. In view of Mr Jook's consistent statement that his only income was the disability support pension in the 2015-16 year, that he was not required to lodge an income tax return for the 2015-16 year and did not do so, the Tribunal is satisfied that Mr Jook's total adjusted taxable income for that year was $21,090. Mr Jook's liability for the relevant period is to be reassessed on this basis.

The Tribunal sets aside the decision under review and remits the matter for reconsideration in accordance with the order that:

• Mr Jook's adjusted taxable income for the 2015-16 year was $21,090.