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Child Support Act 1991

Amount of child support payable under formula assessment made by Commissioner - Determining income percentages

35: Adjusted income

You could also call this:

"How the law calculates your income for child support"

Your adjusted income for a child support year is calculated in one of two ways:

If you only had withholding income in the most recent tax year, your adjusted income is the amount you earned from withholding income in the calendar year just before the child support year starts.

If you had other types of income, your adjusted income is based on your income from the tax year before the most recent one. This amount is then increased by the inflation percentage for the child support year.

If your income hasn't been assessed for a tax year, the Commissioner will figure out your income using the information they have.

There are some exceptions to these rules. You can find more information about how income is determined in sections 38 to 39A. You can also choose to have your adjusted income calculated using estimated income, which is explained in sections 40AA to 44A.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM253965.

Topics:
Family and relationships > Children and parenting
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34: Child support income amount, or

"How the government calculates how much child support a parent should pay"

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35A: Living allowance, or

"Money parents keep for basic needs before paying child support"

Part 2Amount of child support payable under formula assessment made by Commissioner
Determining income percentages

35Adjusted income

  1. A person’s adjusted income for a child support year is,—

  2. if, in the most recent tax year, the person’s income was derived solely from withholding income, the person’s withholding income for the calendar year immediately preceding the start of the child support year; or
    1. if paragraph (a) does not apply, the person’s income derived in the tax year immediately preceding the most recent tax year, inflated by the inflation percentage for the child support year.

      1. If a person’s income for a tax year has not been assessed, the Commissioner must determine the person’s income on the basis of the income and any other particulars known to the Commissioner.

      2. This section is subject to—

      3. sections 38 to 39A (which relate to ascertaining income, etc); and
        1. sections 40AA to 44A (which permit elections for adjusted income to be assessed using estimated income).

          Notes
          • Section 35: replaced, on , by section 10 of the Child Support Amendment Act 2021 (2021 No 6).