Introduction

Child Support is money paid by parents who do not live with their children, or who share care with someone else. These payments help with the cost of raising a child.

There are 2 main ways that Child Support is arranged and paid in New Zealand. This can be:

• through Inland Revenue or
• by other arrangements

Inland Revenue arranges and pays 2 different types of Child Support:

• formula assessment - Inland Revenue works out who should pay Child Support and how much. The liable parent can set up payments or arrange direct deductions from their wages through Inland Revenue, who collects and passes the money from the liable parent to the receiving carer
• voluntary agreement - Parents agree who will pay Child Support and how much. They register this agreement with Inland Revenue, who collects and passes the money from the liable parent to the receiving carer.

People may also choose to make their own payment arrangements that are like Child Support without involving Inland Revenue. These include:

• private arrangement - Parents agree who will pay Child Support and how much. The paying parent pays directly to the carer and there is no involvement from Inland Revenue. This may be a cash payment or specific goods and services.
• foreign Child Support payment - This is a payment similar to Child Support, it is required to be paid under the laws of another country or territory outside New Zealand, and subject to an agreement made between the government of the country or territory, and the Government of New Zealand.

Carers applying for Unsupported Child's Benefit may need to apply for Child Support through Inland Revenue.

Formula assessment Child Support is the only option for carers applying for Unsupported Child's Benefit, when MSD has decided they are required to apply for Child Support.

The assessed amount of Child Support paid by liable parents is used to help pay for the Unsupported Child's Benefit the child's carer gets. When the amount of Child Support paid is more than the rate of Unsupported Child's Benefit, any excess is paid to the receiving carer and is not charged as income.

All other carers can choose whether they want to apply for Child Support.

MSD's role is:

• advising clients applying for Unsupported Child's Benefit they may have an obligation to apply for Child Support
• deciding whether an Unsupported Child's Benefit carer meets any of the reasons they are not required to apply for Child Support whenever information is provided to MSD
• advising Unsupported Child's Benefit carers they do not need to apply if they meet any of the reasons for a carer not being required to apply
• providing Child Support application forms to Unsupported Child's Benefit carers who are required to apply
• collecting and sending completed Child Support application forms to Inland Revenue (including any supporting documents provided to MSD by the client)
• managing queries from Inland Revenue about carers and parents who are required to pay Child Support
• deducting Child Support payments from liable parents' benefits