Glossary of terms for Look at account information online service

Glossary of terms for Look at account information online service

Annual assessment
The amount a paying parent is assessed to pay on a yearly basis

Annual entitlement
The amount a custodial parent is entitled to receive on a yearly basis.

Assessed
Once Inland Revenue Child Support accepts an application for child support, the amount of money the paying parent needs to pay is worked out.

Assessment calculation
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.

Assessment income
The income we base your assessment on. For salary and wage earners, this is income from one year ago. For others, such as self employed contractors, it is income from two years ago.

Assessment list
The five most current years in which the paying parent has been assessed to pay child support.

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.

Balance (paying parent screen)
The rolling summary of a group of transactions within an account.

Child support
Money paid by parents who are not living with their children to help financially support those children.

Credit transferred in
An amount that has been moved from another period and paid into this month.

Crown entitlement
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.

Custodial parent
The person/parent who is caring for the dependent children.

Custodial parent entitlement breakdown (screen name)
A breakdown of the monthly amount of entitlement showing any payments received from the paying parent.

Due date
The date the paying parent is due to make a payment.

Due date monthly breakdown (screen name)
The screen that shows the date and amount of money that is owed by the paying parent.

Employer deduction
These are deductions taken straight from salary or wages to pay child support.

Entitlement
The amount a custodial parent is entitled to receive from the paying parent for the children who are in their care.

Entitlement information
Information about what a custodial parent is entitled to receive.

Entitlement received in full
The amount a custodial parent is entitled to receive for the month has been paid in full.

Entitlement received in part
The amount a custodial parents is entitled to receive for the month has not yet been paid in full.

Exemption
Payment relief available to long-term prison inmates and hospital patients, customers under 16 years of age and some victims of sexual offences.

Living allowance
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.

Monthly assessment
The amount a paying parent is assessed to pay for one year, divided into a monthly amount.

Monthly entitlement amount
The amount a custodial parent is entitled to receive each month.

Notice of entitlement
A letter which the custodian receives showing how much child support they can expect to receive each year.

Objection
Written advice to us that you disagree with a decision or an assessment that we have made.

Qualifying child
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.

Part year assessment
An assessment made for only part of the Child Support year (not the full year).

Paying parent
A parent who is not living with their children but helps financially support their children by paying child support through Inland Revenue.

Payment summary (screen name)
This screen summarises the years assessments, any penalties for payments received late or missed, credits paid in and the balance remaining to be paid.

Penalties
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.

Relationship information (screen)
Details about those involved in the child support arrangement - the custodian, the paying parent, and the child/ren.

Shared care
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.

Transaction
Every type of financial record within a customers account (payments, transfers, refunds, penalties etc).

Underestimation penalty
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.

Uplifted
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.

Voluntary agreement
An agreement to pay child support or domestic maintenance where both parties agree on the amount to be paid.

Date published: 22 Oct 2004

Back to top