Glossary of terms for Look at account information online service
The amount of child support a paying parent needs to pay is calculated using a standard formula. This takes their taxable income, deducts a set living allowance, and multiplies the result by a percentage based on the number of children the parent is paying child support for.
Balance (custodial parent screen)
Please note: the balance figure may not be paid into your bank account.
The balance is conditional on whether Crown Entitlement has run or if there are any credits/debit still to be actioned on this period.
The Crown receives the paying parent's child support payments if the custodial parent is on a benefit. This helps to offset the cost of the benefit. If the paying parent pays more than the cost of the benefit, the extra is paid directly to the custodian.
Payment relief available to long-term prison inmates and hospital patients, customers under 16 years of age and some victims of sexual offences.
This is part of the formula used to calculate child support payments. It is an amount deducted from the paying parent's taxable income according to their personal circumstances, such as whether they live with a partner or have other children in their care.
Notice of entitlement
A letter which the custodian receives showing how much child support they can expect to receive each year.
Written advice to us that you disagree with a decision or an assessment that we have made.
A child who is:
- under 19
- a New Zealand citizen or ordinarily resident in New Zealand
- not living with a person in a marriage, civil union or de facto relationship.
- financially dependant, that is not working full time, receiving a benefit or a student allowance.
Payments not received or those that are received late will be charged a late payment penalty of 10% of the amount due. Every month the amount owing remains unpaid a further 2% incremental penalty will be added.
This is an arrangement when both parents care for their children substantially equally. This generally means that the paying parent cares for the children for at least 40% of the nights in a year. The paying parent is entitled to apply for child support from the custodial parent when shared care is in place.
An underestimation penalty is charged if a paying parent has estimated their income for a year and after their assessment is finalised at the end of the year, we find that their estimated assessment was less than 80% of their finalised assessment. The penalty is 10% of the difference between the assessments.
If a paying parent owes arrears and the custodial parent is not on a benefit, the custodian may choose to take over the collection of monies that the paying parent owes. The debt is then deemed to be "uplifted" and the paying parent does not need to make those arrears payments to Inland Revenue.
An agreement to pay child support or domestic maintenance where both parties agree on the amount to be paid.
Date published: 22 Oct 2004
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