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Asset testing liable parents - too little too late

Asset testing liable parents - too little too late

National Party Welfare spokeswoman Judith Collins is describing as “too little too late”, Labour’s cynical election year attempt to look as if it cares about collecting child support from absent liable parents.

“Nearly $1 billion is owed by absent liable parents living overseas, yet Labour is choosing to tinker with asset testing rules for liable parents still living in New Zealand.

“Figures also show Labour is only chasing a third of the liable parents believed to be living in Australia.

“And instead of going after them, Labour is proposing to write off some of the debt. In essence, Labour is telling absent parents they should leave the country,” says Ms Collins.

According to an answer provided by Associate Revenue Minister David Cunliffe, in the six months to December, 37% of liable parents had failed to fully clear their debt to the Kiwi taxpayer. 8% had made only part payment and 29% had made no payment whatsoever.

“It’s hard not to see the latest changes, six years after coming to office, as a feeble attempt by the Minister to make it look like he’s doing something about a growing crisis.

“The money he is failing to collect comes straight from the pockets of hard-working Kiwis.

“Labour’s run out of time to tackle the big issues facing child support and Mr Cunliffe knows it,” says Ms Collins.


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