Changes to the child support scheme due to take effect in April have been delayed for 12 months, Revenue Minister Todd McClay says.
"Inland Revenue has informed me that because of the complexity of the reforms it needs more time to implement the new scheme to the high standard that the Government expects," he said.
The changes include an alteration to the formula for calculating child support payments to include both parents' income and changes to payment, penalties and debt write-off.
Debt from unpaid child support sits at $2.6 billion, and 60 per cent of that is from overdue penalty payments.
The start date for the new calculation formula for child support would apply to assessment periods from 1 April 2015, while the remaining changes would come into effect from 1 April 2016, Mr McClay said.
The postponement of the new regime would be given effect by amending the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill which is currently before Parliament.
- NZ Herald