Child support is collected by the Department of Inland Revenue and is worked out on a financial year. Depending on whether the person caring for the children is on a benefit or not the money collected is either paid to the government or the person caring for the children. Child Support is calculated using a formula based on the paying parent’s income. Basically it is a percentage of the amount of income left after deduction of a fixed amount based on living circumstances called a living allowance, e.g. single, married, or children. The percentage then taken is based on the number of children the paying parent is paying for. The income used is the last financial year’s income if the paying parent earned all his or her income from wages or salary in New Zealand, otherwise it is based on the income from the financial year before that.

The formula changes a bit when there is shared care. Shared care is usually where the parents have between 40% and 60% of the care of the children and this is usually measured as 40% of the nights, although the Department has a degree of discretion.

An application for child support can be made to the Department of Inland Revenue using forms supplied by them. It can be made at any time, even if the parents have an agreement that child support or maintenance is paid directly. It can be made by either parent and the amount that a person is assessed to pay can be higher or lower than what they are paying under a private arrangement. An application for child support brings any private arrangement to an end.

If the parent caring for the children is on a benefit then an application for child support is made automatically when they apply for certain benefits.

There are two means of challenging an assessment.

1. An Objection

This is really saying the Department of Inland Revenue got it wrong. Examples of this are: the paying parent is not the child’s father or there is shared care and the department will not accept this. There is not normally much scope for an objection as the actual assessment is based on a formula.

An objection must be lodged within 28 days of the decision of Department and the forms can be obtained from the Department. If you are not happy with the outcome of the objection you can apply to a District Court.

2. An Administrative Review

In an administrative review you are not so much saying the Department got it wrong but rather that there are special reasons why the assessment should be changed for you. You can make an application for review at any time but usually only once in any financial year unless you have a new basis for your application. Either the paying parent or the parent caring for the children can make an application.

There are 10 grounds for an Administrative Review and in each case you have to show that there are special circumstances, which take your case out of the ordinary.

That by virtue of special circumstances the capacity of either parent to provide financial support for the child is significantly reduced because of the duty of the parent to maintain any other child or another person. s.105(2)(a)(i)

That by virtue of special circumstances the capacity of either parent to provide financial support for the child is significantly reduced because of special needs of any other child or another person that the parent has a duty to maintain. s.105(2)(a)(ii)

That by virtue of special circumstances the capacity of either parent to provide financial support for the child is significantly reduced because of commitments of the parent necessary to enable the parent to support himself or herself. s.105(2)(a)(iii)(A)

That by virtue of special circumstances the capacity of either parent to provide financial support for the child is significantly reduced because of commitments of the parent necessary to enable the parent to support any other child or another person that the parent has a duty to maintain. s.105(2)(a)(iii)(B)

That in the special circumstances of the case, the costs of maintaining the child are significantly affected because of high costs incurred by a liable parent or qualifying parent in enabling that liable parent access to the child. s.105(2)(b)(i)

That in the special circumstances of the case, the costs of maintaining the child are significantly affected because of special needs of the child. s.105(2)(b)(ii)

That in the special circumstances of the case, the costs of maintaining the child are significantly affected because the child is being cared for educated or trained in the manner that was expected by either of his or her parents. s.105(2)(b)(iii)

That, by virtue of special circumstances, application in relation to the child of the provisions of this Act relating to formula assessment of child support would result in an unjust and inequitable determination of the level of financial support to be provided by the liable parent for the child because of the income, earning capacity, property and financial resources of either parent or the child. s.105(2)(c)(i)

That, by virtue of special circumstances, application in relation to the child of the provisions of this Act relating to formula assessment of child support would result in an unjust and inequitable determination of the level of financial support to be provided by the liable parent for the child because of any payments and any transfer or settlement of property, previously made (whether under this Act, the Matrimonial Property Act 1976 or otherwise) by the liable parent to the child, the qualifying custodian, or any other person for the benefit of the child. s.105(2)(c)(ii)

That, by virtue of special circumstances, application in relation to the child of the provisions of this Act relating to formula assessment of child support would result in an unjust and inequitable determination of the level of financial support to be provided by the liable parent for the child because of an entitlement of the custodian to continued occupancy of a property in which the liable parent has a financial interest. s.105(2)(c)(iii)

 

The administrative review process is run by the Department and involves a hearing before one if it’s review officers. This is fairly informal and can be done in person, by telephone, or in writing. Both parents have an opportunity to be heard and will see the information supplied by the other. The review officer also has access to records held by the Department.

You cannot have a lawyer at the review hearing but you can, of course, seek advice before the hearing and we can also assist with the preparation of your case.

You are able to appeal an objection and an administrative review decision by applying to the Family Court and in some circumstances, such as when there are already other proceedings before the Court, you can commence a review with the Court.

You can have a lawyer at the Court hearing and we can prepare and lodge the necessary documents in addition to giving you advice on your prospects of success.

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