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Definition of Financial Resources

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Is there an actual CSA definition of above term "Financial Resources" within the Act?

I am undergoing a COA and I noticed in the Senior Case Officers explanation from last year she talked about financial capacity. I note in CSA Law there is an actual definition for earning capacity, and of course financial resources is used a number of times, but I could never find a refernce to financial capacity. In my view capacity could be viewed as narrow, and allow CSA to look at say just the salary income of a person who also runs a small business.

However I view financial resources as broader, and therefore my view is that CSA cannot ignore small business losses as they form part of the overall finnacial resources of the individual.

Am I close, mad or have no case?
Asn993,
           to be quite honest, the interpretation of the legislation by the CSA, especially when dealing with change of assessments (aka "Deem and Destroy"), leaves a lot to be desired. I'd suggest doing a search on here for Ladd. Here's part of that judgement, which might well wet your appetite. As to the definition of "Financial Resources" I didn't find a definition in the Assessment Act or in the Registration and Collection Act. My understanding is that the common usage then prevails.


Here's an extract from the Ladd case:-

Ladd & Child Support Registrar & Anor (SSAT Appeal) [2010] FMCAfam 23 (18 January 2010) said
32 While I am satisfied it was appropriate for the Tribunal to analyse the companys depreciation expense as it did, and I find no error in that analysis, it was also necessary for the Tribunal to have considered the financial effect of treating a portion of that depreciation expense (in this case, nearly half) as a financial resource available to the appellant. This exercise would necessarily involve a consideration of the other company expenses. It was then a matter for the Tribunal, in the exercise of its discretion, to decide which of those expenses should be regarded as reasonable for child support assessment purposes, and which (if any) should not.

33 The company accounts[12] for the 2007 financial year show the company made an overall loss in that year of $48,734.90[13]. It was not open to the Tribunal to simply disregard all other expenses of the company resulting in that loss, as it has done. It is clear that if an amount of $39,266 (the depreciation expense the Tribunal found was not used for the purchase of new equipment) were omitted from the Statement of Financial Performance for the company for the 2007 financial year[14], the company would still have an operating loss of $9,468.90 [a loss of ($48,734.90) plus $39,266]. In other words, that amount of $39,266 is not left in the hands of the appellant because, in the circumstances of this case, it makes no impact on the funds available to the appellant from the company. The position may have been different had the company achieved a net profit in that year. It is noteworthy that there is consistency in the company accounts in the 2006 and 2007 financial years. The company has negative equity in both the 2006 and 2007 financial years[15], and the companys trading result in the 2006 financial year was worse than in the 2007 financial year. The Tribunal did not have regard to these facts.

Here's a link to the case Ladd & Child Support Registrar & Anor (SSAT Appeal) [2010] FMCAfam 23 (18 January 2010).

Here's a link to a topic where this case is discussed Financial Resources - SSAT decision set aside.
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