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· Fairer and more effective penalty rules · Compulsory deductions of financial support from source deduction payments made by an employer for newly liable parents · A fairer definition of “income” used for child support purposes, and · A four-year time bar on the reassessment of child support The Child Support Act has been amended to reduce the scheme’s complexity, improve fairness and increase compliance.It is clear that some of the penalties imposed for unpaid child support are actually deterring people from meeting their obligations when those penalties start mounting up,” Revenue Minister David Parker said.The aim is to prepare the child support scheme to transition to Inland Revenue’s new technology platform and in doing so, further simplify the administration of the child support scheme.The Child Support Amendment Bill improves the administration of the child support scheme in line with Inland Revenue’s “right from the start” philosophy.
“These changes give Inland Revenue more time to contact parents to explain child support requirements and contain more effective penalty rules.The Bill also introduces a four-year time bar on the reassessment of child support and a fairer definition of income to include interest and dividends for salary and wage earners, using information already available to Inland Revenue.