There are three important principles that are generally applicable with respect to income:
1. Changes in income amount should be the subject of an estimate if an estimate will resolve the issue;
2. This ground is not limited to changes in income amount;
3. taxable income is only prima facie evidence as a person's income and earning capacity.
The following factors are relevant when considering the extent of financial resources:
1. Differences between cash flow of business in the profit and loss statement, for example, the effect of depreciation
2. Amounts paid in superannuation
3. Amounts paid related persons or entities
4. Amounts retained in companies or trusts
5. Non-taxable income
6. Termination payments
7. Capital gains and capital resources.
in considering income and earning capacity cases, it is important to distinguish between cases where the decision relates to the extent of income or financial resources, and those that relate to earning capacity that is not being exercised.
An appropriate framework for considering income earning capacity cases was set out in W & W  FMCA fam 295.
"a) the ability to generate income;
b) the opportunity to generate income; and
c) whether the parent's pursuits are appropriate in the circumstances".
Family Law Investigations is regularly contacted by aggrieved parties, who perceive that their former partner is withholding on their obligations to provide for their children (the children of the past relationship).
One of the most common requests Family Law Investigations receives from clients is to assist clients with determining is to assist the income and earning capacity of former partners.
If you would like assistance with such a matter please call Family Law Investigations on 07 3807 3807 or email@example.com