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Child Support Act 1991

Collection of financial support - Discretionary relief in respect of penalties and pre-2021 penalties

135G: Discretionary relief if serious hardship

You could also call this:

“Commissioner can waive penalties for child support if you're facing serious money troubles”

If you owe money for child support and can’t pay the penalties, the Commissioner might be able to help you. They can give you relief from paying these penalties if paying them would cause you serious hardship.

Before deciding to give you relief, the Commissioner must think about certain things set out in the Tax Administration Act.

Serious hardship means you’re having big money problems. This could be because:

  • You can’t pay for basic living costs that most people in your community can afford
  • You have to pay for medical treatment for yourself or someone who depends on you
  • You or someone who depends on you is very sick
  • You need to pay for education for someone who depends on you

But serious hardship doesn’t include money problems that come from:

  • Having to pay tax or child support
  • The possibility of going bankrupt
  • Not being able to do as many social activities or buy entertainment
  • Not being able to buy expensive or high-quality things that most people in your community don’t usually have

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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=DLM256049.

Topics:
Family and relationships > Children and parenting Money and consumer rights > Taxes
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135FA: Discretionary relief from incremental penalties unpaid before agreement entered into on or after 1 April 2016, or

"Removing penalties for unpaid child support before agreements made after April 2016"

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135GA: Discretionary relief for residual penalty-only debt, or

"This rule about helping people with leftover penalties is no longer used"

Part 8 Collection of financial support
Discretionary relief in respect of penalties and pre-2021 penalties

135GDiscretionary relief if serious hardship

  1. The Commissioner may grant relief to a liable person from the payment of penalties in the manner prescribed by section 135A if the Commissioner is satisfied that recovery of the penalties would place the liable person in serious hardship.

  2. Before making a decision under subsection (1), the Commissioner must have regard to the matters referred to in sections 6 and 6A of the Tax Administration Act 1994.

  3. In this section and section 180A(1)(b)(i),—

    serious hardship, in relation to a liable person,—

    1. includes significant financial difficulties that arise because of—
      1. the liable person's inability to meet minimum living expenses according to normal community standards; or
        1. the cost of medical treatment for an illness or injury of the liable person or the liable person's dependant; or
          1. a serious illness suffered by the liable person or the liable person's dependant; or
            1. the cost of education for the liable person's dependant:
            2. does not include significant financial difficulties that arise because—
              1. the liable person is obligated to pay tax or financial support; or
                1. the liable person may become bankrupt; or
                  1. the liable person's, or the liable person's dependant's, social activities and entertainment may be limited; or
                    1. the liable person is unable to afford goods or services that are expensive or of a high quality or standard according to normal community standards.

                  Notes
                  • Section 135G: inserted, on , by section 32(1) of the Child Support Amendment Act 2006 (2006 No 42).
                  • Section 135G heading: amended, on , by section 50(1) of the Child Support Amendment Act 2021 (2021 No 6).
                  • Section 135G(1): replaced, on , by section 50(2) of the Child Support Amendment Act 2021 (2021 No 6).
                  • Section 135G(2): amended, on , by section 50(3) of the Child Support Amendment Act 2021 (2021 No 6).
                  • Section 135G(2): amended, on , by section 45(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                  • Section 135G(3): amended, on , by section 50(4) of the Child Support Amendment Act 2021 (2021 No 6).
                  • Section 135G(3): amended, on , by section 44(3) of the Child Support Amendment Act 2013 (2013 No 12).