From 1 April 2015, there are a number of changes to how Child Support will be calculated:
- Both parents’ incomes will be used to calculate child support.
- If you’re a non-parent carer, your income will be not used in the calculation.
- Child support assessments will be based on your taxable income from the previous calendar year (1 Jan – 31 Dec) if you’re a salary or wage earner, or from two tax years ago (1 Apr – 31 Mar) if you earn overseas income or file an IR3 return.
- Allowances are deducted from your income before child support is calculated. These include:
- Living Allowance: a set amount that parents need to be able to support themselves; will not include an amount for new partners.
- Dependent child allowance: for children in your care that you are the parent of, and for whom child support is not paid or received.
- Multi-group allowance: provided to parents who have multiple child support assessments with different parents. It ensures you are able to provide support to all the children that child support is calculated for.
- Care cost: the new formula recognises there are costs associated with caring for your children, and that the more care you have of a child, the more your expenses will be.
- Child expenditure table: the new formula uses a “child expenditure” table to calculate the dependent child allowance, multi-group allowance and the child support assessment. The table represents the average costs of raising a child and is split into 3 to accommodate children aged 12 and under, 13 and over, and children in both age groups. The child expenditure table calculates for one, two, and three or more children. Research found that net costs did not increase significantly after three children.
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