Contents
Child Support income : Contents

Deemed Receipt

MSD must determine when a Child Support payment is available to a client to use as income (i.e. when it arrives in their bank account). This is called the deemed receipt.

The deemed receipt is used to work out the start of an income charge for an information share Child Support payment. The deemed receipt is generally automated. This means it is worked out automatically, generally with no involvement from staff.

Calculating the deemed receipt

The date when Inland Revenue sends Child Support payments to the bank is called the transaction date.

The transaction date is generally:

After Inland Revenue sends the payment to the bank, the money may take a day or so to arrive in the client’s bank account. The deemed receipt is 1 business day after the transaction date. This is the latest date a client is expected to get an information share Child Support payment in their bank account.

The deemed date is calculated automatically based on the transaction date.

Note in some situations, clients may get an information share Child Support payment later than the deemed receipt. When a client tells MSD this has happened, the deemed receipt can be changed to a later date.

Example

Megan gets Child Support from her ex-partner through Inland Revenue. She is also getting Jobseeker Support.

On Tuesday 22 August, Inland Revenue sends the Child Support payment to the bank. Inland Revenue tells MSD that Megan was paid Child Support on 22 August (the transaction date).

MSD uses the transaction date to work out when Megan will get the payment in her bank account (the deemed receipt). The deemed receipt for Megan’s Child Support payment is Wednesday 23 August. This is 1 business day after the transaction date.

For more information see:

Information share Child Support payments
Payment cycle
Automated income charging rules
Charging from grant date or commencement date
Payment stacking
Income charging for weekly pay periods
Income charging for fortnightly pay periods
Couples with different pay periods
Clients transferring between benefits
Assistance not included in automated income charging

Legislation

  • deemed receipt (definition) schedule 2 Social Security Act 2018
  • information share child support payment (definition) schedule 2 Social Security Act 2018
  • Special provisions on calculation of weekly income that is information share child support payment schedule 3, part 3 Social Security Act 2018
Top

An information share Child Support payment that is paid by Inland Revenue to a receiving carer on the second business day after the 19th of a month.

These payments generally relate to ‘on-time’ Child Support liability for the previous month, but could also be ‘late’ payments of Child Support for any period of liability in the past that are paid on the same day as an in-cycle payment.

Legislation

...

The business day Inland Revenue releases an information share Child Support payment to the bank.

Legislation

An information share Child Support payment paid by Inland Revenue to a receiving carer on any day other than the second business day after the 19th of a month (i.e. not an in-cycle payment).

These payments generally relate to Child Support that a liable parent has not paid on time.

They may relate to any liability period in the past, other than the immediately preceding month (unless the due date for that ...

A day of the week other than:

The date MSD considers a client to have received an information share Child Support payment.

The deemed receipt is the first business day after the transaction date (unless MSD determines that the payment is received on a later date).

Legislation

The use of systems or components of systems to replace repeatable processes to reduce dependency on manual actions or interventions.