Child Support changes

Changes in 2016 inclue

  • Change to the child support qualifying age
  • Penalty rate decrease and debt write-off changes
  • Two new child support administrative review grounds

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From 1 April 2015 the Child Support calculation formula and income definitions were changed.

New formula

  1. Child Support will be based on the costs of raising children, including the additional costs of raising teenagers.

  2. The care a parent provides for their child will be included in the Child Support calculation if it is 28% or more.

  3. New allowances will be allocated to both parents own living costs and any other children they have

Income definition

  1. Both parents income will be used to calculate Child Support

  2. Both parents will be able to estimate their income if it reduces by 15% - refer new rules for estimations

Further changes are expected in 2016, with more types of income being included in the definition of income, and children will cease to be eligible for Child Support when then turn 18, unless attending school

The Inland Revenue will contact you with information about the changes. They will check your information and calculate your new Child Support under the new formula.

For more information http://www.ird.govt.nz/childsupport-changes/ or call our tax team

 

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