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Budget 2014: Funding to improve Child Support payments

Hon Todd McClay
Minister of Revenue

22 May 2014

Budget 2014: Funding to improve Child Support payments

The Government has allocated funding in Budget 2014 to increase the collection of Child Support from liable parents and improve the promptness of payments, says Revenue Minister Todd McClay.

“Around 73 per cent of liable parents currently do not make their first child support payment on time and 44 per cent of Child Support debt is not under any payment arrangement at all,” Mr McClay says.

“That is not fair to children relying on Child Support.”

Budget 2014 has allocated funding of $43.579 million over the next five years to improve Child Support payments through the ‘Child Support Compliance’ initiative.

“Through expanded resourcing for early contact initiatives, this funding will increase the collection of Child Support from liable parents both in New Zealand and overseas. It will also improve the timing of payments to receiving parents.”

“The Government believes that if people new to the scheme fully understand what they can expect as a Child Support parent and what their responsibilities are then compliance will be improved.”

“Timely payments mean that parents have some certainty and can make longer-term financial plans,” Mr McClay says.

The initiative is expected to deliver a forecast increase in Child Support collection of approximately $174 million over the five year period, a return of around $4 for every $1 invested.

ENDS

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