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United Future
Since: Aug 2007
Posts: 314

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Dunne outlines key child support law changes

The way child support is calculated will be changed to reflect the actual cost of raising children today, the degree of shared care between parents and the income of both parents, Revenue Minister Peter Dunne announced today.
Speaking at the UnitedFuture conference in Wellington, with Prime Minister John Key in attendance, Mr Dunne said these and other changes would be in legislation introduced to Parliament in the next few months.
The changes included:

The number of nights a year used to determine shared care being reduced from 40 percent to 28 percent of nights;
Having child support payments deducted directly from the paying parent’s pay-packet; and
Changing the penalty rules for parents defaulting on their payments so they are not so punitive as to discourage parents from resuming payments.

Mr Dunne said many parents had a real sense that the current system was unfair.
“And they have been right. We have reviewed it, we have called for public submissions and we have listened to them, and I think the changes we are now proposing reflect the very strong feedback we received,” he said.
Mr Dunne said he did not expect the changes to please everyone... Read the full text of this article.

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Brayden Smith
Since: Mar 2010
Posts: 14

Can anyone advise at what point the formula will be available for review?

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Toni Field
Since: Sep 2010
Posts: 22

Yay glad to read and hear that this is finally going to happen, although the changes will be too late to affect us.
Currently under Ground 8 of an Administrative Review the determining officer has the ability to apply some of the proposed changes especially if the receiving parent is in a better financial position than the paying parent.
However in our case, depsite trying to push this point and make the IRD child support staff and review officers see this, they refuse to budge and will only apply Ground 8 to the paying parent.
Regarding unpaid child support, again the Review officers have the ability to overly inflate a ncp's income and then backdate it up to 11 months ( in our case). This then creates a "debt" to the paying parent and if he cannot meet the inflated amount then overdue fees are charged.
In the commercial sector if you want to pursue a debt you have to provide proof of the debt. Not so with "admin review assessed income for child support debt". If the IRD say you owe it, you owe it and they don't have to prove a thing, because there is nothing to prove.
Then if you don't pay the "debt" they will swoop into your bank account and pluck it out without telling you.
At the end of a child support year there is supposed to be a reconciliation or "squaring up" of the income and child support paid. However according to a review officer we had last week a square up is only for estimated income, not assessed. Now my theasaurus tells me that estimated and assessed have pretty much the same meaning, as opposed to ACTUAL income that was supplied by the ncp for the square up. FACT V FICTION? FICTION WINS WITH THE IRD!

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Richard B
Since: Aug 2011
Posts: 1

I think you are missing one thing about the changes to "shared care".
Why would a receiving parent want to have a reduction in their so called "pay packet". You will find that a person receiving who is "using" the children to receive money will use them again so the children see less of the paying parent.
Surely this is not intended but does and will happen as the children will be used as pawns and miss out.
If the broken relationship could not work why does everybody think a rational conversation can occur between 2 people who do not like each other anymore?
Courts are an option (do you know how much that costs)? You would be shocked to learn the costs for a worker not entitled to legal aid due to actually having an income instead of being on a benefit.
As for child support coming out of the pay packet..... IRD actually put penalties on me due to their miscalculation of when I got paid. Got it sorted only after complaining to them as they refused to put the money that had been taken out of my pay packet into the correct month which was overdue by their own mistake, yet was in the month that hadn't even started!!!
As you can probably tell I am a paying parent and so is my partner.
We have 4 children to deal with through 3 other parents plus their partners. Only 1 of which is rational and reasonable over the children. Funnily enough this is the only worker, as the other 2 are on benefits and have ZERO INCENTIVE to change this.
Do you really think these 2 will just "give up" money when they are already using the children to get their lifestyles paid for?
Nice try to fix a system that is fatally flawed but it will need more than a sticking plaster.

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Ross Fitzgibbon
Since: May 2010
Posts: 4

I agree with Richard.

Tho i have had a reasonable relationship with the ird,lots of mistakes have been made ,but have been able to sort them out.

What should have been the focus is getting more parents to enter into private arrangements to keep the ird out of it.

My ex refuses to enter into an agreement,i have always paid and have had an active role in my kids life.
28% is 102 nights at present i have them 72 nights but alot of days mainly weekends,i thought this review would take that into account,

I'm sure Australia starts @ 11% and then has a sliding scale.

The whole point i thought is to encourage more parents to become more active in their childrens lifes.

It should have started @ 1% and the more you share the care in turn you pay less and actually have the money to care for your children.

At present it makes no difference if i have them 1 night or 145 nights and soon it will be 1 or 101 nights.

So in turn i have to work more just to get a reasonable standard of living,thus affecting the time i can spend with my kids.

Its a crazy system (all about the money) i,m sure we all wish it wasn't but thats in the end what it comes down too.

Just want my kids to be happy ,and not to all the time in the back of my mind,to be thinking how i'm going to find the $2000 to pay the ird.

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ddfe hyice
Since: Jul 2011
Posts: 14

I believe that the Australian @ 11%, and start according to the proportion.

I think the whole point is to encourage more parents are more positive children's life.

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