Child Support Changes
Child support laws will change from 1 April 2015 and if you’re paying or receiving child support you should have received your new assessment or entitlement by now.
The formula that IRD uses to calculate child support now takes into account both parents income which in theory is a good thing, however the way it is calculated and apportioned has meant many child support assessments come with an unexpected significant increase.
The formula now takes into account shared care when it is 28% (102 nights a year) and over however you must provide a minimum of 35% (128 nights a year) care to receive child support payments.
The living allowance has also changed and from 1 April 2015 no longer include an amount for new partners. However, if others do rely on your financial support, for example a new partner and their children, you can apply to IRD to have your living allowance reviewed.
It is worth checking that the income and shared care IRD has based your assessment on is correct. If your income has dropped by more than 15% from the amount you were assessed on, you can now estimate your income and IRD will reassess your payments.
If your child support changes from 1 April 2015 it may also affect your Working for Families entitlement.
To sum it up the results are quite different from how IRD portrayed it, and whilst we can’t change the formula we recommend you check that the information included in your assessment is correct.