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.
For more information see:
Legislation
- Social security beneficiaries to pay financial support by automatic deduction section 131 Child Support Act 1991
- Priority of deductions under this Act section 157 Child Support Act 1991
