Contents
Child Support : Contents

Child Support deducted from benefit

When a liable parent is getting a benefit, any Child Support they need to pay is automatically deducted from their benefit.

Inland Revenue decides the amount of Child Support, based on a formula assessment, and sends deduction notices to MSD. The deductions from the liable parent’s benefit are compulsory.

MSD is considered the liable parent's employer for Child Support payments.

Protected earnings

Child Support deductions cannot be more than 40% of the liable parent's total net income.

When a liable parent’s only source of income is their benefit, this means 40% of their benefit amount is the most that can be deducted. If a liable parent has more than one source of income, more than 40% of their benefit can be deducted at the liable parent's request.

Child Support deductions take precedence over all other deductions.

Legislation

A person who must pay Child Support to Inland Revenue in respect of a qualifying child.

They may or may not also be a caregiver of that child. For example, they may be a caregiver of the qualifying child in a shared care situation, as well as being the liable parent.

Legislation

Deduction refers to paying parents who make payments to Inland Revenue.