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Child Support Act 1991

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

40AA: Interpretation for purposes of sections 40 to 45

You could also call this:

“Explaining important words for understanding child support payments”

In sections 40 to 45, there are some important words and ideas you need to know about:

Annualised estimated taxable income is the amount of money you think you’ll earn in a certain time period, calculated as if it were for a whole year.

An election is when you choose to use your estimated income instead of your usual income to work out your child support payments for a specific time.

The election period is the time your choice applies to. It can be a whole year or part of a year, depending on when you make your choice.

Estimated taxable income is the amount of money you think you’ll earn during the election period.

Original adjusted taxable income is the amount that would have been used to work out your child support if you hadn’t made an election.

The reconciliation period is explained in another part of the law (section 44(3D)).

Year-to-date income is the money you’ve earned from the start of the child support year up to the month before your election period begins.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6438961.

Topics:
Family and relationships > Children and parenting
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Part 2 Amount of child support payable under formula assessment made by Commissioner
Estimate of income

40AAInterpretation for purposes of sections 40 to 45

  1. In sections 40 to 45, unless the context otherwise requires,—

    annualised estimated taxable income means the amount that a person estimates will be their income in an election period, annualised (if the estimate does not cover a full child support year) in accordance with the following formula:

      election means an election, made by a person under section 40, to have the person’s estimated income, instead of their income referred to in section 35(1)(a) or (b), applied for the purpose of calculating the person’s adjusted income for an election period

        election period, in relation to a child support year to which an election relates, means,—

        1. if notice of the election is given under section 40 before the start of the child support year, the child support year; and
          1. if notice of the election is given under section 40(1) during the child support year, the period in the child support year that starts on the first day of the month in which the notice is given and ends on the last day of the child support year; and
            1. if notice of the election is given during or after the child support year under section 40(8), the period that—
              1. starts on the later of the first day of that child support year and the first day of the month in which the formula assessment begins; and
                1. ends on the last day of that child support year

                estimated taxable income means the amount specified in a notice of election given by a person under section 40 as the amount of income that the person estimates that he or she will earn in the election period

                  original adjusted taxable income means the adjusted income that would have been used to assess a person's child support liability during an election period if the person had not made an election

                    reconciliation period has the meaning given in section 44(3D)

                      year-to-date income means a person's income specified in a notice of election given under section 40 for the period beginning with the start of a child support year and ending with the end of the month immediately preceding the month in which the election period starts.

                      Notes
                      • Section 40AA: inserted, on , by section 13 of the Child Support Amendment Act 2013 (2013 No 12).
                      • Section 40AA annualised estimated taxable income: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA election: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA election: amended, on , by section 17(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Section 40AA election period paragraph (b): replaced, on , by section 234(a) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section 40AA election period paragraph (c): replaced, on (immediately after being inserted by section 14(1) of the Child Support Amendment Act 2021), by section 234(b) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section 40AA estimated taxable income: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA original adjusted taxable income: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA original taxable income: repealed, on , by section 17(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Section 40AA reconciliation period: inserted, on , by section 14(2) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA year-to-date income: amended, on , by section 14(3) of the Child Support Amendment Act 2021 (2021 No 6).
                      • Section 40AA year-to-date income: amended, on , by section 9(2) of the Child Support Amendment Act 2021 (2021 No 6).