Bill to simplify child support passes third Parliament reading

NewsHub 19 March 2021
A bill that will make the child support scheme less complicated has passed its third reading in Parliament.

Under changes to the Child Support Act, penalty rules will be simplified and there will be compulsory deductions from payments made by an employer.

A four-year time bar on the reassessment of child support will be established, as well as a wider definition of income.

Parliamentary Under-Secretary Dr Deborah Russell said the changes make the scheme as fair and simple as possible.

“The government is committed to making changes that will mean better long-term outcomes for more Kiwi children and this will provide certainty for parents and the 185,000 qualifying children,” she said.

The new legislation also removes incremental penalties, which will come into effect from 1 April.

Revenue Minister David Parker said the government wanted to to encourage greater compliance and greater engagement from liable parents.
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