Payment cycle

Inland Revenue assess Child Support as an annual amount.

The total amount for the year is then divided by 12 to work out how much the liable parent has to pay each calendar month.

Payments are due from the liable parent on the 20th of each month. Each payment represents the amount owed for the previous month. For example, the payment due in August is the Child Support for July.

Regular or in-cycle payments are Child Support that is paid on time. This is the amount the liable parent owed for the calendar month immediately before the due date.

When the liable parent pays Child Support on time, Inland Revenue pays the money to the receiving carer on the first business day after the due date.

This means Inland Revenue pay all in-cycle payments to the receiving carer 2 business days after the 19th of each month. This allows for weekends and public holidays.

For example, if the 20th of the month is not on a weekday (e.g. a Sunday), then payments will be made to banks on the Tuesday to allow time for the liable parent's payments to be processed. Tuesday (the 22nd of the month in this example) is 2 business days after the 19th of the month.

If the 20th of the month is a weekday, e.g., a Wednesday, payments will be due on that day. Inland Revenue send payments to banks on the business day after the due date, which is Thursday. In this example, Thursday is the 21st of the month and is 2 business days after the 19th.

Late or out-of-cycle payments are Child Support that is paid late. This happens when the liable parent pays Child Support after the due date. In this situation, Inland Revenue pays the receiving carer as soon as the payment is made to Inland Revenue.

Out-of-cycle payments can be paid on any business day of the month and can represent any length of time. They are sometimes called arrears payments of Child Support.

Example

Mariana is entitled to $80 of Child Support each month from the liable parent, Garth. Garth pays when he can, but Mariana hasn't got any Child Support since January. On 10 June, Garth pays $320 to Inland Revenue. This is the Child Support he owes for the previous 4 months.

Inland Revenue pays the $320 to Mariana on 10 June.

This is an out-of-cycle payment as it is Child Support that was due on 20 February, 20 March, 20 April, and 20 May.