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Changes to the present child support system are long overdue, says Revenue Minister Peter Dunn. (UnitedFuture)
Children should win under changes to New Zealand's child support system with plans for a fairer, more realistic and less punitive regime.
Minister of Revenue, Peter Dunne said that changes to the present system which was introduced in 1992 were long overdue and would be more relevant to the present age.
They include a more realistic costing of raising children today and it will take into account the income of both parents.
The number of nights a year used to determine shared care will be reduced from 40 percent to 28 percent of nights.
“Both parents are far more likely to be working today, and separated fathers are generally more actively involved with their children than perhaps they were a generation ago …," Dunne told the UnitedFuture NZ Party conference yesterday.
At present 210,000 children depend on child support.
Changes, including relaxing the rules around excessive penalties for late payment and the writing off of overdue payments under certain conditions, are intended to encourage the liable parent to pay.
Parents who perceived that the system was fair were more likely to accept responsibility for their child's upbringing, said Dunne.
Child support payments would be automatically deducted from the liable parent's pay packet.
Bob McCoskrie, Family First National Director, agrees that looking at the income of both parents and lowering the 'night test' criteria is fairer than the present system.
“It (the 'night test') takes into account parents who may be having more limited contact … doing the pick-ups and drop-offs for school and looking after the day management but the kid is sleeping at the other parent's (home) at night.”
2008 figures show that nearly 13,000 liable parents live overseas yet this group owes one third of the total debt.
Automatic deductions are relevant, says Mr McCoskrie, as some parents are “shirking” their responsibilities or heading for Australia. “2008 figures show that nearly 13,000 liable parents live overseas yet this group owes one third of the total debt.”
McCoskrie says there needs to be more flexibility where a parent may oppose a separation, loses contact with their child but still pays child support.
“The whole 'no fault' divorce thing means that you don't take into account that one party may be 'at fault' and yet the innocent party still becomes financially liable,” he says.
Dunne says that legislation introducing the changes would be put before parliament over the next few months.
As at the end of June 2011, $605 million in child support was unpaid. Added to that is $1,666 billion worth of unpaid penalties.
The changes will go into effect from 1 April 2013 and 1 April 2014.
