Child Support Act 1991, ss 29–31, 36A, Schedule 3

If you’ve been assessed by Inland Revenue as having to pay child support, Inland Revenue calculates the specific amount you’ll have to pay using what’s called a “formula assessment”. If you have to pay child support you’re called the “liable parent,” while the other parent is called the “receiving carer”.

For more information on the formula assessment, go to the IRD website, here (or go to: www.ird.govt.nz and search “Formula assessment”).

Child Support Act 1991, ss 31, 32, 72

Regardless of what your assessed child support amount is, there’s a minimum you’ll have to pay – so if your assessed amount is less than the minimum, the assessed amount will simply be increased up to the minimum. The minimum amount changes each year in line with inflation.

If you’ve had children with more than one ex-partner and will have to pay child support for all of them, IRD will apply a limit on the total amount of child support you can be required to pay for all these children (“multi-group cap”). The purpose of the cap is to make sure you don’t have to pay more in total than you would if all these children were living together in the same house. If you have children with more than one ex-partner, then in the terms used in the child support scheme you have more than one “child support group”.

There’s no cap or limit on child support if you have only one “child support group”.

Child Support Act 1991, ss 35(1), 40AA-45

For child support purposes, your taxable income is based on the previous January-December calendar year if you’re a wage or salary earner, and in other cases on the basis of the tax year (April to March) before the last tax year. However, if you expect your current income to be at least 15% less than your income from that earlier calendar or tax year, you can apply to IRD to allow you to estimate your income for the current year, that is, what you believe your income is going to be for the year.

If your income changes more than once in a year, you can apply again for a different estimate to be used. However, IRD won’t let you do this if you’ve already applied within the last three months and if your proposed new estimated annual amount would change the existing estimate by only $500 or less.

Note: Under the child support laws which came into force from April 2015, both parents’ incomes are relevant to whether child support will have to be paid and how much. Either parent, not just the liable parent, can now ask Inland Revenue for their income to be estimated.

Child Support Act 1991, ss 108–111

Child support is paid by the liable parent to Inland Revenue in monthly amounts, and IRD passes those payments on to the other parent, also in monthly payments.

However, either parent can apply to the Family Court for an order for the liable parent to pay child support in a lump sum, rather than in regular amounts.