29 July 2013

Child support laws are changing

From 1 April 2014, a new child support law may mean the amount of child support parents pay or receive could change.

Programme Director, Geoffrey Frost, said that the reforms include a comprehensive new formula for calculating child support assessments based on the circumstances of both parents, improving the way the child support scheme operates, and improving the way penalties are managed.

“These changes are designed to help ensure New Zealand children are financially provided for when their parents live apart. The changes represent the first major overhaul of the scheme in 20 years and reflects how life has changed significantly for Kiwi families during this time,” Mr Frost said.

“Inland Revenue currently only considers the paying parent’s income. The new formula will take into account a wider range of factors including both parents’ incomes and the level of care that both parents provide to their children.

“Inland Revenue will be contacting all child support customers this year to tell them about the changes and in February, customers will receive a notice letting them know how much they will receive or pay from 1 April 2014,” Mr Frost said.

“A parent or caregiver receiving a sole-parent or unsupported-child benefit from Work and Income will not have their benefit affected by the child support changes and will still receive any child support paid over the amount of their benefit.

“If customers wish to get an estimate of how these changes may affect them, the new calculators are live on our website now.”

Further information http://www.ird.govt.nz/childsupport-changes

ENDS

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