IMPROVE the Child Support System in NZ as it is not fit for purpose


IMPROVE the Child Support System in NZ as it is not fit for purpose
The issue
WHY THIS PETITION MATTERS?
If you have children and are separated from your partner you may be required to pay child support, sometimes crippling amounts, even if you have 50/50 care!!
The system is shockingly unfair, and, in many circumstances causes extreme stress for the paying parent.
The current NZ Child Support system creates perverse incentives for separated parents to minimise their income. This lowers New Zealand’s productivity and drives children of separated parents further into poverty.
48% of NZ married couples are separated so this affects a significant portion of our young people, parents and our struggling economy.
A number of loopholes URGENLY need amending as they lead to one parent being charged extortionate rates of child support while their ex enjoys freeriding on huge amounts of child support.
Three such loopholes are outlined below:
1. Separated parents who are self-employed can reduce their income on paper, meaning their income for Child Support is grossly understated.
2. Separated parents with new partners financiallysupporting them may not work full time, meaning their income for child support purposes is extremely low.
3. Separated parents are able to reduce their income for child support purpose for each child they go on to have after separation. They are not required to include their new partners income in calculations. This means their income for Child Support is grossly understated.
CHANGES WE WOULD LIKE TO SEE
1. Parents who have 50/50 care DO NOT pay child support after five years of separation if they have been in a 50/50 arrangement for two years or more.
2. Base limits apply to income calculations. Parents areauto-allocated a base rate income for the purpose of calculations (equal to 40 hours a week work on minimum wage, currently $52,000). This removes the need for so many Admin Reviews.
3. Future children to new partners DO NOT reduce income for Child Support Purposes.
4. Child support ends, or, is redirected to the child when the child leaves home.
This entire system needs a re-design. So many of our good, hard working, kiwi parents are being financially rinsed by their Ex and the system allows this! It’s madness!
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512
The issue
WHY THIS PETITION MATTERS?
If you have children and are separated from your partner you may be required to pay child support, sometimes crippling amounts, even if you have 50/50 care!!
The system is shockingly unfair, and, in many circumstances causes extreme stress for the paying parent.
The current NZ Child Support system creates perverse incentives for separated parents to minimise their income. This lowers New Zealand’s productivity and drives children of separated parents further into poverty.
48% of NZ married couples are separated so this affects a significant portion of our young people, parents and our struggling economy.
A number of loopholes URGENLY need amending as they lead to one parent being charged extortionate rates of child support while their ex enjoys freeriding on huge amounts of child support.
Three such loopholes are outlined below:
1. Separated parents who are self-employed can reduce their income on paper, meaning their income for Child Support is grossly understated.
2. Separated parents with new partners financiallysupporting them may not work full time, meaning their income for child support purposes is extremely low.
3. Separated parents are able to reduce their income for child support purpose for each child they go on to have after separation. They are not required to include their new partners income in calculations. This means their income for Child Support is grossly understated.
CHANGES WE WOULD LIKE TO SEE
1. Parents who have 50/50 care DO NOT pay child support after five years of separation if they have been in a 50/50 arrangement for two years or more.
2. Base limits apply to income calculations. Parents areauto-allocated a base rate income for the purpose of calculations (equal to 40 hours a week work on minimum wage, currently $52,000). This removes the need for so many Admin Reviews.
3. Future children to new partners DO NOT reduce income for Child Support Purposes.
4. Child support ends, or, is redirected to the child when the child leaves home.
This entire system needs a re-design. So many of our good, hard working, kiwi parents are being financially rinsed by their Ex and the system allows this! It’s madness!
ReplyForward
512
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Petition created on 19 September 2023