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Inland Revenue

Tax Policy

Chapter 5 - Options for a revised child support formula

The discussion document asked whether the factors discussed above should be taken into account in determining child support payments. If so, a revised child support formula would incorporate:

  • basing child support payments on estimated average expenditures for raising children in New Zealand;
  • recognition for lower levels of care; and
  • taking the income of both parents into account.

Respondents were asked whether all these factors should be taken into account. They were also asked, if only one of these ideas could be changed, which would they most like to see.

Results of online consultation

Q1: Do you think that the factors mentioned so far (expenditure for raising children, shared care and taking both parents’ income into account) should be used to work out child support payments?

Pie chart - Question 1 - Yes, all these factors should be taken into account (69%), No, not all these factors should be taken into account (31%)

Note: The view that all the factors should be taken into account was particularly prominent amongst paying parents. Some 83% of paying parents felt they should all be taken into account, compared with 47% of receiving parents.

Q2: If only one idea could be changed, which one would you most like to see?

Pie chart - Question 2 - Expenditure for raising children (34%), Taking both parents' income into account (33%), Shared care (24%), None of them (9%)

Summary of comments on options for a revised child support formula

The tone of written submissions generally indicates a preference for comprehensive change rather than change in just one issue.