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Child Support Act 1991

Amount of child support payable under formula assessment made by Commissioner - Provisions relating to income

38: Application of assessments under Income Tax Act 1976 or Tax Administration Act 1994

You could also call this:

"How tax assessments are used to figure out child support payments"

This law explains how income assessments from tax laws are used in child support calculations. Here's what you need to know:

When the government calculates child support, they use your income as assessed under tax laws. This is usually the last assessment made before the child support calculation.

If your tax assessment changes after the child support calculation, the child support amount usually stays the same. However, there are some exceptions:

  1. If your income changes by more than $500 and you're notified before the end of the child support year, the child support amount will be updated.

  2. If you provided false or misleading information on your tax return, any changes to your income will affect your child support.

The government can still make other changes to child support amounts using different parts of the law, even if your tax assessment doesn't change.

This law also defines some terms, like what counts as a "default" in providing tax returns, and which tax laws are referred to as "income tax Acts".

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM253981.

Topics:
Family and relationships > Children and parentingMoney and consumer rights > Taxes
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Part 2Amount of child support payable under formula assessment made by Commissioner
Provisions relating to income

38Application of assessments under Income Tax Act 1976 or Tax Administration Act 1994

  1. Subject to this Part, where an assessment has been made of a person's income under an income tax Act (other than an assessment made where there has been default in furnishing returns) or the Tax Administration Act 1994 (other than an assessment made under section 106 of that Act)) for any income year, then, in making a formula assessment, the person's income under the relevant one of those Acts for that income year is, for the purposes of this Act, to be taken to be that income as so assessed or as last so assessed, as the case may be, before the making of the formula assessment.

  2. Subsection (1) has effect despite the making, after the making of the formula assessment, of an amendment under an income tax Act or the Tax Administration Act 1994 to the relevant assessment of the person's income under the relevant one of those Acts (whether or not the amendment is made because of an objection in relation to the assessment).

  3. Subsection (2) does not apply in relation to the person in any case where—

  4. the income of that person assessed under an income tax Act or the Tax Administration Act 1994 in any amended assessment made after the making of a formula assessment for a child support year is more than $500 in excess of, or less than, the income of that person assessed, or last assessed, before the making of the formula assessment; and
    1. notice of the amended assessment is issued by the Commissioner on or before the last day in the child support year;—
        1. and, where such an amendment is made, the person's income under the relevant Act for that income year is to be taken to be, and always to have been, the person's income for the income year as last so assessed under the relevant Act, and the Commissioner shall amend the formula assessment accordingly.

      1. Subsection (2) does not apply in relation to the person in any case where the reason (or one of the reasons) that the amendment was made was because, in the opinion of the Commissioner, the return of income made by the person under an income tax Act or the Tax Administration Act 1994 was fraudulent or wilfully misleading or omitted all mention of income which is of a particular nature or was derived from a particular source, and, where such an amendment is made, the person's income under the relevant Act for that income year is to be taken to be, and always to have been, the person's income for the income year as last so assessed under the relevant Act.

      2. Where—

      3. the Commissioner, applying subsection (1), assesses the annual amount of child support payable by a person; and
        1. after the making of the formula assessment, an amendment is made under an income tax Act or the Tax Administration Act 1994 to the relevant assessment of the income of any parent for the last relevant income year; and
          1. neither subsection (3) nor subsection (4) applies in relation to the amendment,—
              1. then, in subsequently amending the formula assessment other than for the purpose of giving effect to the provisions of section 39(3) of this Act, the amendment made under an income tax Act or the Tax Administration Act 1994 is to be disregarded.

            1. Where—

            2. notice of an assessment (including an amended assessment) of a person's income under an income tax Act or the Tax Administration Act 1994 has been given under the relevant one of those Acts; and
              1. the notice was dated,—
                  1. the assessment is to be taken, for the purposes of this section, to have been made on the date of the notice.

                1. Nothing in this section is to be taken to prevent the Commissioner making a determination under Part 5A, 6A, or 6B or the court making an order under Part 7.

                2. In this section, unless the context otherwise requires,—

                  assessment made where there has been default in furnishing returns means an assessment made if any person makes default furnishing a return, including by—

                  1. providing information in a return or an account that is not likely to be correct; or
                    1. providing a return that the Commissioner is not otherwise satisfied with; or
                      1. not making a return where the Commissioner has reason to suppose that the person is a taxpayer

                        income tax Act means all or any of the Income Tax Act 1976, the Income Tax Act 1994, the Income Tax Act 2004, and the Income Tax Act 2007.

                        Compare
                        • Child Support (Assessment) Act 1989 s 56 (Aust)
                        Notes
                        • Section 38 heading: amended, on (applying to 2002–03 and subsequent income years), by section 261(1) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
                        • Section 38(1): amended, on , by section 13(1) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(1): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(1): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(2): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(2): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(2): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(3): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(3): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(3)(a): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(3)(a): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(3)(a): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(3)(b): amended, on (applying to 2002–03 and subsequent income years), by section 261(2) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
                        • Section 38(4): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(4): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(4): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(5): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(5): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(5)(a): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(5)(a): amended, on , by section 34 of the Child Support Amendment Act 2013 (2013 No 12).
                        • Section 38(5)(b): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(5)(b): amended, on , by section 34 of the Child Support Amendment Act 2013 (2013 No 12).
                        • Section 38(5)(b): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(5)(c): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(6)(a): amended, on , by section 13(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(6)(a): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 38(6)(a): amended, on (applying to 2002–03 and subsequent income years), by section 261(3) of the Taxation (Taxpayer Assessment and Miscellaneous Provisions) Act 2001 (2001 No 85).
                        • Section 38(6)(a): amended, on (applying with respect to tax on income derived in 1995–96 and subsequent income years), by section YB 1 of the Income Tax Act 1994 (1994 No 164).
                        • Section 38(7): substituted (with effect on 1 July 1994), on , by section 6(1) of the Child Support Amendment Act 1994 (1994 No 74).
                        • Section 38(7): amended, on , by section 12 of the Child Support Amendment Act 2006 (2006 No 42).
                        • Section 38(8): inserted, on , by section 13(3) of the Child Support Amendment Act 2021 (2021 No 6).