22 Aug 2011

Child support law changes on the way

3:18 pm on 22 August 2011

The Government is going to change the way child support is calculated.

Revenue Minister and United Future leader Peter Dunne announced the changes at his party's annual conference on Sunday, saying many parents have a real sense the current system is unfair and adjustments are long overdue.

The number of nights a year used to determine shared care will be reduced, from 40% to 28% of nights, and child support payments will be deducted directly from parents' pay packets.

The proposed changes will also eliminate loopholes that allow paying parents to hide income in family trusts.

Mr Dunne said the penalties regime for missed payments will also be adjusted. What happens at present, he says, is that debts build up and never get paid.

"People get overwhelmed, shut up shop, flee to Australia - it's simply an unacceptable situation and the kids are the ones that suffer."

Legislation bringing in the changes will be introduced to Parliament in the next few months.

Lobby goup Fathers of New Zealand say the changes will be a step in the right direction, but do not go to the root of the problem.

A spokesperson, Andrew Wooton, says the best way to lift payment of child support is to make sure paying parents have regular access to their children.

Barrister and legal commentator Catriona MacLennan says the changes to the way child support is calculated may swing too far in favour of the paying parent.

"It results in a large drop, so that's going to be seen as a pretty major advantage for paying parents. It will be interesting to see some figures about that - because I'm not quite sure that that's really going to be so fair to the receiving parents."

Ms MacLennan agrees with the proposals to deduct child support payments directly from parents' pay packets and prevent paying parents hiding income in family trusts.

Valued relationship - PM

Prime Minister John Key told the 80 delegates at the United Future conference that if National is re-elected, it will want to work again with the party.

Mr Key said the National Party values the relationship it has with United Future and the work its leader Peter Dunne has carried out as Revenue Minister.

He says the two parties do not agree on everything and never will, but can work through their differences.