Government to give more time for child support reforms

  • Todd McClay

Revenue Minister Todd McClay has said that more time will be given to prepare for the introduction of reforms to the child support scheme.

“The first of the reforms in the Child Support Scheme Amendment Act 2013 were scheduled to come into effect on 1 April 2014 however Inland Revenue has informed me that because of the complexity of the reforms it needs more time to implement the new scheme to the high standard that the government expects”, says Mr McClay . Mr McClay said that he had sought assurances from IRD that the changes agreed by Parliament earlier this year could be implemented as proposed.

“As a result of the complexity of the new legislation and my desire to give absolute certainty to mums and dads I have decided that the responsible course of action would be to postpone the implementation of these changes by 12 months. I’m keen to ensure that parents and children who rely upon New Zealand’s child support system can have certainty.

“For this reason I am not willing to implement these changes until I am assured that they can be made smoothly and that parents will not be adversely affected”, says Mr McClay . The start date for the new calculation formula for child support would apply to assessment periods from 1 April 2015, while the remaining changes would come into effect from 1 April 2016. 

“I propose to recommend the deferment be included in a Supplementary Order Paper to the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill currently before Parliament.  The Supplementary Order Paper would also include a number of other minor technical amendments”, says Mr McClay.

Inland Revenue will inform parents of this deferral over the coming weeks.