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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22809
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Can I have my last years child support reassessed, my actual

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Can I have my last years child support reassessed, my actual income turned out to be much less than I was assessed at due to finishing work and changing location/ country

christhelawyer :

Hi Welcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear

christhelawyer :

The first place to go is back to discuss this with IRD. They have a process where if your income has dropped by more than 15% from the amount you were assessed on, you can estimate your income, and they make a new assessment. For more information on estimating your income, phone them on 0800 221 221 or read their factsheet Estimating your income (IR151).

christhelawyer :

If you have done this then the next step wopuld be an administrative review. Do you need some information about this.

Customer: Yes, the reassessment for income less than 15% is only for the current tax year so I'm told, my issue was that I changed country in the Aus/ NZ tax year difference (apr-June) which made the year I need to reassess last years, I am definitely less than 15% reduced, assessment was at $130,000, made approx $98,000, and I wasn't working from mid April through to June. So it would be the administrative review process that I need to pursue?
christhelawyer :

Yes, because they cannot change this otherwise and you still have yto pay at the higher rate until this is actually changed.

christhelawyer :

An administrative review is based on the Family Court departure order process. Child Support staff organise the review process, but the actual review is done by an independent person, called the review officer, who is contracted to Inland Revenue.

In deciding whether to change an assessment, the review officer must consider:

  • your special circumstances

  • whether a change would be fair to both parties and the children

  • if a change would be otherwise appropriate.

When you apply for an administrative review, you will be asked to provide details of your financial situation. If the other parent wants to take part in the review:

  • they are allowed to have a copy of your application and any supporting information, including the financial details

  • you are allowed to have a copy of their response and supporting information.

This swapping of information is done:

  • so both people know all the information the review officer will be considering, and

  • so each can respond to the other's details.

You can find more information on administrative reviews in the booklet Helping you to understand child support reviews (IR175).

Grounds for review

When you apply for an administrative review, you must be able to show that you have "grounds for review". There are ten grounds for review:

Ground 1You have a duty to maintain another child or person.
Ground 2It costs extra to cover the special needs of another child or person you have a duty to maintain.
Ground 3You have necessary expenses in supporting yourself.
Ground 4You have necessary expenses in supporting another child or person you have a duty to maintain.
Ground 5It costs more than 5% of the child support income amount to enable the paying parent to have contact with the child.
Ground 6It costs you extra to cover the child's special needs.
Ground 7It costs you extra to care for, educate or train the child in the way that was expected by either parent.
Ground 8The child support assessment does not take into account the income, earning capacity, property or financial resources of either parent or the child.
Ground 9You are the paying parent and the assessment does not take into account that you have previously made payments, transfers or property settlements for the benefit of the child.
Ground 10You are the paying parent and you still have a financial interest in a property that the custodian is entitled to live in.
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