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Child Support Act 1991

Amount of child support payable under formula assessment made by Commissioner - Election that child support income be based on estimated taxable income for current year

40: Estimated income

You could also call this:

“How you can use a lower income estimate for child support”

You can tell the Commissioner before or during a child support year that you want to use an estimated income for your child support assessment. This is called making an election.

The Commissioner will usually accept your election if your estimated income plus any income you’ve already earned that year is 85% or less than your original income.

When you make an election, you need to tell the Commissioner your estimated income for the whole year if you’re doing it before the year starts. If you’re doing it during the year, you need to say how much you’ve earned so far and what you think you’ll earn for the rest of the year.

The Commissioner might not accept your election in some situations. For example, if you have a court order about your income, if you’ve made too many elections recently, or if you haven’t given your tax return when you should have.

You can give your election to the Commissioner in any way they agree to. They’ll treat it as given in the month you sent it, even if they get it the next month.

The Commissioner might ask you for more information to support your estimate. If you don’t give this information, they might not accept your election.

If you’re getting your first child support assessment, you can make an election within 28 days of being told about the assessment, even if it’s for a past year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM254018.

Topics:
Family and relationships > Children and parenting
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Part 2 Amount of child support payable under formula assessment made by Commissioner
Election that child support income be based on estimated taxable income for current year

40Estimated income

  1. Any person may, by notice to the Commissioner given before or during a child support year, elect that the income to be used to assess their adjusted income for an election period must be the estimated income specified in the notice of election.

  2. The Commissioner, subject to subsections (4) and (6), must accept an election if the sum of the person's year-to-date income (if any) and the person's estimated income is 85% or less than the person's original adjusted income.

  3. A notice of election must,—

  4. if notice of the election is given before the start of the child support year to which it relates, state the person's estimated income for the full child support year; or
    1. if notice of the election is given during the child support year to which it relates, state—
      1. the person's year-to-date income; and
        1. the person's estimated income for the election period; or
          1. if notice of the election is given after the child support year to which it relates, state—
            1. the person’s year-to-date income; and
              1. the person’s estimated income for the election period.

            2. The Commissioner may not accept an election if—

            3. an income amount order is in force in relation to the person, and to any months in the child support year in respect of which the election is to apply; or
              1. the person is subject to an order of the court under section 187; or
                1. the person has made an election within the previous 3 months, and the proposed new election would change the person’s annualised estimated income by $500 or less; or
                  1. the person made an election in relation to an earlier child support year and was required to provide a return of income under the Income Tax Act 2007 or the Tax Administration Act 1994 in relation to that year, but, at the time the notice is given under this section, the person is in breach of the requirement to furnish a return of income in respect of that year; or
                    1. notice of the election is given after the child support year to which it relates, and the person has made an earlier election for that child support year; or
                      1. the person's annualised estimated income is more than their original adjusted income.

                        1. A notice under this section may be given in any form acceptable to the Commissioner, and is to be treated by the Commissioner as having been given in the month in which it was sent or provided by the person making the election, even if it is received by the Commissioner in the following month.

                        2. The Commissioner may decline to accept an election if the person making the election does not, on request by the Commissioner, provide the information and evidence that the Commissioner requires in order to support the making of the estimate.

                        3. Subsection (8) applies to any person who receives an assessment unless they already have an existing assessment of child support.

                        4. The person may make an election during or after a child support year to which the election relates, provided the election is received by the Commissioner on or before the 28th day after notification of the assessment.

                        5. If an election is made after a child support year under subsection (8), this section applies as if separate elections were made for each child support year to which the assessment relates.

                        Notes
                        • Section 40: replaced, on , by section 13 of the Child Support Amendment Act 2013 (2013 No 12).
                        • Section 40 heading: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(1): amended, on , by section 15(1) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(1): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(1): amended, on , by section 18(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                        • Section 40(1): amended, on , by section 208(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                        • Section 40(1): amended, on , by section 208(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
                        • Section 40(2): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(2): amended, on , by section 18(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                        • Section 40(3)(a): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(3)(b)(ii): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(3)(c): inserted, on , by section 15(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(4)(c): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(4)(da): inserted, on , by section 235(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                        • Section 40(4)(e): amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(4)(e): amended, on , by section 18(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                        • Section 40(7): inserted, on , by section 15(3) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(8): inserted, on , by section 15(3) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(8): amended, on , by section 235(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                        • Section 40(9): inserted, on , by section 15(3) of the Child Support Amendment Act 2021 (2021 No 6).
                        • Section 40(9): amended, on , by section 235(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).