NZ Herald 21 October 2015
Measures to encourage parents to pay child support and reduce the level of child support debt have taken a step closer to becoming law.
A taxation bill that includes proposals to deal with long-standing child-support debt, announced in this year\’s budget, passed its second reading in Parliament yesterday.
Revenue Minister Todd McClay said the bill included measures to encourage liable parents to \”re-engage with their child support obligations\” and to strengthen Inland Revenue\’s ability to work with parents to help with their child-support debt and make payments.
\”Child-support debt is currently $3.2 billion and rising, and only around $700 million in actual child support,\” Mr McClay said.
\”The rest is debt from penalties. This is the legacy of a penalty system that was overly punitive and which is now being changed.\”
If the bill passes its third reading, measures would come into force in April.
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