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Child Support Act 1991
Amount of child support payable under formula assessment made by Commissioner
Provisions relating to income
38A: Position where taxable income from withholding income not available for full tax year

1Title and commencement 2Interpretation 3Act to bind the Crown 3AApplication, transitional, and savings provisions relating to amendments to this Act 4Objects 4AOverview of child support payable under formula assessment

Part 1:
Liability to pay child support under formula assessment

General principles concerning liability to pay child support

5Children who qualify for child support 6Parents by whom child support payable 7Meaning of parent 7ACommissioner may disregard document from overseas jurisdiction if not satisfied that document is valid and authentic 7BAssumptions about parents of child

Application for formula assessment

8Who may apply for formula assessment 9UCB beneficiaries must apply for formula assessment 10Form of application

Persons who are principal providers of care or who share care substantially equally

11Multiple applications in single form 12Deemed application by UCB beneficiary 13Notification by Commissioner of application 13ACases where formula assessment to be refused

Part 2:
Amount of child support payable under formula assessment made by Commissioner

28This Part sets out rates of child support 29Commissioner to assess child support payable under formula assessment 30Formula for assessing annual amount of child support 31Annual amount of child support payable by liable parent

Modifications to basic formula in certain circumstances

32Minimum annual rate of child support

Determining income percentages

33Income percentage 34Child support income amount 35Adjusted income 35ALiving allowance 35BDependent child allowance 36Multi-group allowance

Amounts payable in respect of receiving carers

36AWhere parent is sole receiving carer 36BWhere no receiving carers are parents 36CWhere 1 receiving carer is parent and other is non-parent

Expenditure on children

36DChild expenditure tables

Provisions relating to income

37Nil assessment of taxable income 38Application of assessments under Income Tax Act 1976 or Tax Administration Act 1994 38APosition where taxable income from withholding income not available for full tax year 39Position where income not readily ascertainable 39ACommissioner may take overseas income into account

Estimate of income

40AAInterpretation for purposes of sections 40 to 45

Election that child support income be based on estimated taxable income for current year

40Estimated income 41Effect of election 42Revocation of election and subsequent elections 43Effect of revocation of election 44End-of-year reconciliation 44ADetermining income amount if no tax return filed

Penalties for underestimation

45Penalty if estimated income less than 80% of actual income 46Interest to be charged on underestimations

Part 3:
Voluntary agreements

47Application of this Part

Qualifying voluntary agreements

48Voluntary agreements that qualify for acceptance 49Minimum instalment required before agreement can be accepted 50Exception where payee is UCB beneficiary 51Exception in respect of child support voluntary agreement where formula assessment applies 52Exception in respect of spousal voluntary agreement where court order in force 53Dual-purpose voluntary agreements 54Act not to affect other provisions of agreement

Procedure on application for acceptance of voluntary agreements

55Application requirements 56Dual applications 57Decision on application 58Consequences of Commissioner accepting voluntary agreement 59Commencement of liability under voluntary agreement

Procedure after acceptance or refusal of voluntary agreements

60Duty to give notice of decision 61Duty to make assessment

Termination of liability to make payments under voluntary agreements

62When payments under voluntary agreement cease to be payable

Variation of voluntary agreements

63Voluntary agreement may be varied

Miscellaneous provisions

64Election to terminate liability under voluntary agreement 65Child support voluntary agreement no bar to application for formula assessment 66Voluntary agreement no bar to application for maintenance order under Family Proceedings Act 1980 66ACommissioner to give effect to orders made under Property (Relationships) Act 1976

Part 4:
Court maintenance orders made after 1 July 1992

67Application of this Part 68Effect of certain court orders 69Duty to make assessment 70Election that Commissioner is not to enforce order 71Period for which money payable under this Act

Part 5:
Assessment of child support and domestic maintenance

Minimum rate of child support or domestic maintenance

72Minimum rate of child support or domestic maintenance

Exemption in certain circumstances for prisoners and hospital patients

73Application for exemption by prisoner or hospital patient 74Effect of election 75End of exemption 76Prisoner or hospital patient to advise Commissioner if exemption ends

Provisions relating to making of assessments

77Assessment on basis of information supplied to Commissioner 78Assessment to relate to all children for whom child support payable 79Assessment to relate to whole or part of single child support year 80Assessments for part of child support year 81Notification requirements of parent 81AAmendments of assessments arising from living circumstances existing at time when assessment begins 82Parents and receiving carers to advise Commissioner of changes 83Evidence relating to assessments 84Validity of assessments 85Assumptions as to future events 86Commissioner to give effect to changed circumstances 87Amendment of assessments 87AFour-year time bar for amendment of certain assessments 88Notice of assessment of formula assessment of child support 88ADetails in notices of assessments 89Notification by Commissioner to other payers and payees

Part 5A:
Exemptions

Outline and definitions

89AOutline 89BDefinitions for this Part

Exemptions for hospital patients, persons suffering from long-term periods of illness, prisoners, and persons under 16 years

Exemption for hospital patients and persons suffering from long-term periods of illness

89CExemption for long-term hospital patients 89CAExemption for persons suffering from long-term periods of illness

Exemption for prisoners

89DExemption for long-term prisoners

Exemption for persons under 16 years

89EExemption for persons under 16 years

Restrictions on application of exemptions

89FExemption does not apply at any time during child support year if income criteria not met at any time during relevant period 89GOther restrictions on application of exemptions

Application and grant of exemptions under this subpart

89HApplications for exemptions under this subpart 89IGrant of exemption under this subpart 89JExempted person not entitled to refund

Determinations in relation to exemptions for hospital patients, persons suffering from long-term periods of illness, prisoners, and persons under 16 years

89KCommissioner may make determinations in relation to exemptions 89LApplication for determination 89MDetermination that exemption does not apply or ceases to apply or determination confirming exemption 89NDetermination that provisions of Act relating to formula assessment of child support will be departed from 89OReasons for determination 89PCommissioner may refuse to make determination because issues too complex 89QApplication disclosing no grounds for making determination: how dealt with 89ROther party to be notified 89SProcedure for dealing with application 89TCircumstances in which representation or assistance at hearing may be approved 89USubsequent applications 89VEffect of pending applications 89WCommencement of determinations 89XRestriction on publication of reports of proceedings

Exemption for victims of sex offences

89YApplication for exemption on grounds relating to sex offence 89ZGrant of exemption to victim of sex offence 89ZAExemption is void in certain circumstances

Miscellaneous provisions concerning exemptions

89ZBCommissioner must give effect to exemption and may take changes into account 89ZCExempted person must advise Commissioner of certain matters 89ZDLiable person liable for payment of financial support for parts of child support year to which exemption does not apply 89ZEApplications by agents

Part 6:
Objections

90Objections to appealable decisions 91Objections to assessments 92Requirements in relation to objections 93Notice of result of objection 94Determination of objection not to affect other assessments or decisions 95Obligation to pay financial support where objection made 96Objections to which this Part does not apply

Part 6A:
Departure from formula assessment of child support initiated by liable parent or receiving carer

96ACommissioner may make determination 96BApplication for determination 96BAFour-month time limit for certain applications that are time-barred under section 87A 96CMatters as to which Commissioner must be satisfied before making determination 96DDeterminations that may be made 96ERequirements for application 96FCommissioner may refuse to make determination because issues too complex 96GApplication disclosing no grounds, etc, for making determination—how dealt with 96HOther parties to be notified 96IProcedure for dealing with application 96JCircumstances in which representation or assistance at hearing may be approved 96KChild support agreements entered into before determination made 96LSubsequent applications 96MEffect of pending applications 96NSuspension of liabilities 96OCommencement of determinations 96PRestriction on publication of reports of proceedings

Part 6B:
Departure from formula assessment of child support initiated by Commissioner

96QCommissioner may make determination under this Part 96RMatters that Commissioner must be satisfied of before making determination 96SCommissioner may make preliminary enquiries 96TNotice to subject parent giving chance to respond 96UWritten response by subject parent 96VDecision by Commissioner to start proceedings under this Part 96WCommissioner to notify subject parent 96XCommissioner to notify receiving carers and liable parent with rights of election under section 96Y 96YElection by receiving carer or by liable parent to become party or discontinue proceedings 96ZWritten representations by parties 96ZAProcedure for making determination 96ZBDeterminations that may be made 96ZCCommissioner may refuse to make determination because issues too complex 96ZDEffect of pending proceedings under this Part 96ZECommencement of determinations 96ZFRestriction on publication of reports of proceedings 96ZGApplication of certain provisions in Part 6A to proceedings under this Part

Part 7:
Jurisdiction of courts in relation to child support and domestic maintenance

General provisions relating to jurisdiction

97Jurisdiction of courts 98Minimum liability in respect of child support 99Declarations in respect of step-parents

Appeals from decisions of Commissioner in respect of objections under Part 6

100Appeal by person from whom formula assessment of child support sought 101Appeal by unsuccessful applicant for formula assessment 102Appeals against decisions of Commissioner 103Appeals against assessments

Appeals in relation to determinations

103AAppeal in relation to determination or decision under subpart 3 of Part 5A 103BAppeal by respondent from determination under Part 6A 103CAppeal from determination under Part 6B 103DPowers of Family Court on appeal 103EImplementation of orders

Orders for departure from formula assessment in special circumstances

104Application for departure from formula assessment in special circumstances 105Matters as to which court must be satisfied before making order 106Orders that may be made 106AFurther provision on orders for re-establishment costs situations if income increases 106BFurther provision on orders for offsetting of liabilities situations 107Implementation of orders

Orders for provision of child support in form of lump sum

108Application for order for provision of child support in form of lump sum 109Orders for provision of child support in form of lump sum 110Relationship between lump sum orders and assessed child support 111Effect of lump sum orders on formula assessment of child support

Discharge, suspension, revival, and variation of orders

112Discharge, suspension, revival, and variation of orders

Orders to set aside voluntary agreements

113Power to set aside agreements 114Implementation of decision

Effect of pending appeals

115Pending appeal or application not to affect assessment

Suspension orders

116Urgent maintenance orders 117Suspension orders

Provisions relating to court orders

118General powers of court 119Cessation of orders under Act

Miscellaneous provisions

120Appeal from decisions of courts 121Evidence on hearing of appeal against disallowance 122UCB beneficiary is compellable witness against liable parent 123Conduct of proceedings 124Publication of reports of proceedings 125Intervention in proceedings 126Copies of orders to be forwarded to Commissioner 127Orders by consent

Part 8:
Collection of financial support

Financial support is debt due to the Crown

128Debt due to the Crown

Method in which financial support to be collected

129Right to choose voluntary automatic deductions or other payment method 129ANewly liable persons to pay financial support by automatic deduction 130Defaulters to pay child support by automatic deduction 131Social security beneficiaries to pay financial support by automatic deduction

Due dates for payment of financial support

132Due date for payment of financial support 133Alteration to first due date where notice of assessment issued 134Penalties for late payment of financial support debts 134AAASixty-day grace period before penalties apply 134AStatus of penalties under section 134 134BAct's provisions on liable person's financial support debt also apply to payees' debts arising from overpayments

Interpretation provision relating to relief from penalties

135Interpretation for purposes of sections 135A to 135G

Sufficient reason for declining to enter into or make payment agreement

135AANon-compliance without reasonable cause with previous payment agreements

Discretionary relief in respect of penalties and pre-2021 penalties

Mandatory relief in respect of initial late payment penalty

135GBRelief from initial late payment penalty if full or substantial compliance with payment arrangement entered into or made on or after 1 April 2016 and within 3-month period 135HRelief from initial late payment penalty if full compliance with payment arrangement entered into or made before 1 April 2016 and within 3-month period 135IRelief from initial late payment penalty if minimum amount

Mandatory relief in respect of incremental penalties

135JRelief from incremental penalties unpaid before agreement entered into on or after 26 September 2006 135JARelief from incremental penalties unpaid before deduction plan made on or after 1 April 2016 135KRelief from incremental penalties in relation to arrangements entered into or made before 26 September 2006 135LWriting-off of incremental penalties if non-compliance with arrangement 135MRelief from ongoing incremental penalties if payment agreement in force 135NRelief from ongoing incremental penalties if deduction notice in force

Miscellaneous

135ORefunds paid out of Crown Bank Account without further appropriation 136Amounts payable per month and per day

Application of payments collected

137Order in which payments to be applied by Commissioner 138Apportionment of payment between payees

Part 9:
Payment of financial support

Establishment and operation of Child Support Trust Bank Account

139Establishment of Child Support Trust Bank Account 140Payments into, and out of, Child Support Trust Bank Account

Payments by Commissioner

141Payment to receiving carers who are not UCB beneficiaries 142Payment of formula assessment child support to receiving carers who are UCB beneficiaries 143Payment of voluntary agreement child support to receiving carers who are UCB beneficiaries 144Payment of lump sum and other child support 145Payment to spouses or other partners 146Time at which payments are to be made 147Unremitted deductions made by employers or PAYE intermediaries 148Method by which payments to be made 149Unexplained remittances 150Time at which unexplained remittances deemed to be received 151Overpayments to payees before 1 April 2016 151AAOverpayments to payees on or after 1 April 2016 151ARelief where child support overpaid before estimation 152Relief in cases of serious hardship 152ARelief in case of exemption granted to liable person 152B Offsetting child support payments

Part 10:
Automatic deductions

153Interpretation

Automatic deductions

154Deduction notice 155Money from which deductions to be made 156Copy of deduction notice to be given to liable person 157Priority of deductions under this Act 158Life of deduction notices 159Duty of payer to make deductions from money payable 160Periodic deductions from money other than source deduction payments 161No opting out 162Authority to make deductions 163Payment of deductions to Commissioner 164Discharge of liable person's liability to Commissioner and payer's liability to liable person 165Protected net earnings rate 166Position where liable person has 2 or more employers 167Deductions to be held on trust 168Payer failing to make financial support deductions 169Unpaid financial support to constitute charge on payer's property 170Payers not to disclose information

Offences and penalties

171Offence to prejudice employees because of financial support liability 172Other offences in relation to this Part 173Penalty for late deductions 174Write-off of late deduction penalty

Miscellaneous provisions

175Application of other provisions to amounts payable under this Part 176Application of amounts paid or credited where 2 or more debts due 177Records to be kept by payer

Part 11:
Enforcement provisions

178Mode of recovery of unpaid financial support 179Payee has no right to take action to recover financial support payments 179AWaiver of right to payment 180Payee may uplift financial support debt 180ACommissioner may write off benefit component of child support debt if receiving carer was UCB beneficiary and recovery would cause serious hardship or be inefficient use of Commissioner's resources 180BCommissioner may write off child support debt if liable person has died and his or her estate is insufficient 180CCommissioner may write off child support debt if receiving carer has died and debt is likely to be unable to be recovered 180DSections 180B and 180C to cover child support penalties 181Application of tax overpayments 182Bankruptcy 183Warrant to seize property

Charging orders

184Charging orders 185Charging orders on life insurance policies 186Extent to which charging orders bind the Crown

Receiving orders

187Receiving orders 188Powers and duties of receiver

Provisions as to enforcement of financial support liability

189Order for enforcement of arrears 190Power to issue summons to appear in court 191Evidence of default 192Power to summons witnesses 193Execution of warrants 194Conduct of examination 195Orders by court 196Contempt procedures 197Application of Legal Services Act 2000 198Liable person doing community work to be discharged on payment 199Arrest of liable person

Miscellaneous provisions

200Dispositions may be restrained 201Dispositions may be set aside 202Procedure in High Court where defendant absent from New Zealand 203No limitation of action to recover financial support 204Crown Proceedings Act 1950 not affected 205Recovery of financial support paid by one person on behalf of another 206Direct payment to payee 207Amounts paid where no liability to pay exists, etc

Part 12:
Offences and penalties

208Offences 208AOffences by payers 209Officers and employees of corporate bodies 210Penalties for offences 211Proceedings must be commenced by Commissioner 212Charging document may charge several offences 213Charging document may be filed within 10 years

Part 13:
Reciprocal agreements

214Interpretation 215Adoption of reciprocal agreement with other countries

Part 14:
General provisions

Refunds of financial support

216Refund of excess financial support 216AMethod of application for refund of excess financial support paid 216BTransfer of refund 216CForm of request for transfer of refund 216DCommissioner must transfer refund 217Appropriation of refunds

Miscellaneous provisions

218Meaning of ordinarily resident in New Zealand 219Power of Commissioner in respect of small amounts 219APower of Commissioner where small debit results from exchange rate fluctuations 220Evidentiary certificates by Commissioner 221Commissioner may appear in legal proceedings by employee of the Crown 222Proceedings not affected by vacancy or change in office of Commissioner 223Service on protected person 224Proceedings where respondent is absent from New Zealand or cannot be found 225Proceedings by or against minors 226Appointment of lawyer to represent child in proceedings 226AAppointment of lawyer to assist court 226BFees and expenses of lawyer appointed under section 226 or 226A 226COrder requiring reimbursement of costs payments 226DEnforcement of orders made under section 226C 227Vexatious proceedings 228Evidence 229Power of Family Court or District Court to call witnesses 230Proof of certain matters 231Standard of proof 232Costs 233Court fees 234Rules of procedure 235Regulations 236Changes in published statistics to be disregarded 237Rounding of amounts 238Applications by agents 239Notification requirements 240Secrecy

Part 15:
Amendments to other Acts

Amendment to Accident Compensation Act 1982

241Compensation not assignable

Amendment to Administration Act 1969

242Protection of administrator against certain claims

Amendment to Adoption Act 1955

243Effect of adoption order

Amendment to Children, Young Persons, and Their Families Act 1989

244Recovery of cost of maintenance of children and young persons in care

Amendment to Companies Act 1955

245Preferential payments

Amendment to District Courts Act 1947

246Effect of attachment orders

Amendment to Family Courts Act 1980

247Jurisdiction of Family Courts

Amendments to Income Tax Act 1976

248Incomes wholly exempt from tax 249Interpretation of term pay-period taxpayer

Amendment to Inland Revenue Department Act 1974

250Interpretation

Amendments to Insolvency Act 1967

251Priorities 252Debts from which discharge releases bankrupt

Part 16:
Transitional and savings provisions

253No liability to pay financial support under this Act until 1 July 1992

Enforcement of maintenance liabilities after Royal assent

254Changes to ways in which maintenance liabilities may be enforced 255Evidence of default

Enforcement of liable parent contributions payable before 1 July 1992

256Savings in respect of outstanding liable parent contributions 257Saving in respect of assignment of accident compensation 258Saving in respect of jurisdiction of Family Courts

Enforcement of maintenance liabilities payable before 1 July 1992

259Savings in respect of outstanding maintenance liabilities 260Savings in respect of assignment of accident compensation

Conversion of liable parent contributions

261Automatic applications for formula assessment in respect of existing liable parent contributors

Child maintenance liabilities after 1 July 1992 under existing court orders and registered agreements

262Expiry of certain suspended child maintenance orders and agreements 263Continuation of certain other child maintenance orders and agreements 264Enforcement of Department of Social Welfare administered child maintenance orders and agreements 265Enforcement of other child maintenance orders and agreements 266Deferral of commencement of formula assessment in certain cases

Continuation of existing maintenance orders after 1 July 1992

267Enforcement of Department of Social Welfare administered maintenance orders and agreements 268Enforcement of other maintenance orders and agreements

Child Support Amendment Act (No 3) 2013

268ATransitional provision for proceedings commenced before commencement of Child Support Amendment Act (No 3) 2013 but not completed

Miscellaneous provisions

269Transfer of information during transitional period 270Beneficiaries to apply for child support from 16 March 1992 271Assessment activity under Social Security Act 1964 to cease from 16 March 1992 272Transitional date for calculating living allowance 273Transitional date for departure order and lump sum order applications 275Application of repealed provisions of Tax Administration Act 1994 276Application, transitional, and savings provisions relating to amendments to Act

Schedule 1:
Application, transitional, and savings provisions relating to amendments to Act made on or after 1 April 2015

Schedule 2:
Care cost percentage

Schedule 3:
Expenditure on children

Child Support Act 1991

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

38A: Position where taxable income from withholding income not available for full tax year

You could also call this:

"This rule about part-year income no longer applies"

This part of the law used to talk about what happens when someone's income from certain sources isn't available for the whole tax year. However, this section no longer exists in the current law. It was removed on 1 April 2015, so you don't need to worry about it anymore.

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 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM253997.

Topics:

Family and relationships > Children and parenting

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

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

39: Position where income not readily ascertainable, or

"What happens when it's hard to know how much money you made"

Part 2Amount of child support payable under formula assessment made by Commissioner
Provisions relating to income

38APosition where taxable income from withholding income not available for full tax year (Repealed)

Notes

Section 38A: repealed, on 1 April 2015, by section 34 of the Child Support Amendment Act 2013 (2013 No 12).

Child Support Act 1991

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

38A: Position where taxable income from withholding income not available for full tax year

"This rule about part-year income no longer applies"

Part 2Amount of child support payable under formula assessment made by CommissionerProvisions relating to income

38APosition where taxable income from withholding income not available for full tax year (Repealed)

Part 2Amount of child support payable under formula assessment made by Commissioner
Provisions relating to income