Media statement
For immediate release
Thursday, 28 February 2008

Dunne pleased with initial child support figures

Revenue Minister Peter Dunne is welcoming initial figures that suggest the Government’s newly-implemented measures to ensure liable parents meet their obligations to their children are working.

The Child Support Amendment Act took effect in September 2006 and allowed for a write-off of penalties each six months proportionate to the amount of child support debt paid by liable parents who have agreed to and maintained a debt repayment schedule.

Mr Dunne said “Of the 33,684 liable parents who benefited from the new arrangement, the majority – 26,954 – had been struggling with debt for a year or more.

“Analysis of those 26,954 people shows that between 2005 and 2006, 13,430 debtors had increased their debt and 13,524 had reduced their debt.

“But after the Act came into force, between 2006 and 2007, only 7,443 increased their debt and 19,511 reduced their debt.

“Between 2005 and 2006, the total debt owed by the same group of people increased by $6.9 million, but fell by $22.8 million between 2006 and 2007.

“Furthermore, Inland Revenue has recorded 67,000 qualifying arrangements as at 31 December 2007.

“From 26 September 2006 and 31 December 2007, those liable parents had paid $162.2 million and $23.7 million in incremental penalties had been written off.

Mr Dunne said “The trend is still emerging but it seems clear that more and more liable Kiwi parents are paying more and more money to the children they are responsible for.”

ENDS

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