Revenue Minister Peter Dunne is calling for a change to the child support system, saying "too many children are suffering".
Close Up revealed tonight that more than 500 parents earning more $100,000 dollars a year haven't paid child support debts, and Inland Revenue seems powerless to do anything about it.
Dunne said the child support system has become "outdated" and "unreasonable," and wants the issue addressed.
Solo mother Michelle Menken told Close Up she receives the bare minimum of $15 a week from her son's high-earning father.
Menken claimed that her ex-partner, who remains unnamed, has millions of dollars in assets in a trust but owes thousands of dollars in arrears.
"We have the legal authority to look through various trusts and accounts, but unfortunately, there are always going to be cases where the information is incomplete, or the person is just one step ahead of us," Dunne told Close Up.
"We have people who evade and avoid and build up big penalties, and that's the problem."
Dunne said that the system put in place around 20 years ago is not equipped to handle some child support cases.
"Social conditions have changed quite markedly in that time. For instance, more custodial spouses, women, have returned to the work force. These were not the norm when child support was put in place."
However, Dunne said it is not only mothers who are finding themselves at the mercy of the child support scheme.
"I see a number of cases where dads are the ones who are struggling, and yet the father's still got to pay the child support. I think that's inflexible, I think that's unreasonable, and I think it needs to be changed."
Dunne said that the system needs to be carefully looked at by the government before it becomes a much bigger problem.
"It's a social justice issue we need to address. We've got too many kids at the end of the day who are suffering; we've got parents on both sides of the equation who are suffering; and we've got people who are just not able to get on with their lives."
What do you think of the current child support system? Does it need changing? Have your say on the message board below.
Add a Comment:
Post new commentleolady said on 2010-09-02 @ 15:11 NZDT: Report abusive post
Are there going to be changes for fathers who have an ex-wife who uses the support to maintain her lifestyle even though she is remarried and doesn't pay any bills, has no mortgage because she is freehold, thanks to ex-husband, and makes no contribution to supporting her own children because she doesn't want to work, Is there going to be an onus on mothers to financially support their own children or will we carry on with the archaic "I had your children, you pay"?
grsyder said on 2010-08-25 @ 00:30 NZDT: Report abusive post
Hello, I am a paying parent living in Australia, We lived here as a family until my wife took off with the kids back to NZ. I have been watching with interest the rubbish coming from MP's . For 4 years peter Dunne has promoted the need to have both parents incomes assessed. it has not happened. And the papers spout on about bad dads . I pay $1900 per month half my net income and a similar mortgage. NZ child support is useless.
wonder_y said on 2010-08-19 @ 22:59 NZDT: Report abusive post
Well, why I can appreciate the difficulties faced by those carers whose partner does everything they can to pay anything, there are those, largely in shared custody situations who seem to be treated very unfairly. I am in a week about arrangement, but have to pay some $1200 dollars per month, meaning an effective rate of $600pw for the weeks that the 2 kids are not with me.
dutchgirl said on 2010-08-16 @ 13:27 NZDT: Report abusive post
I had admin reviews 4 years in a row and "won" every time.My sons father took IRD and me to court but again lost.He is a qualified teacher,but claims to now only earn the minimum wage or $12000 per year working for his father.He is suppose to pay $900 per month but pays only $67 the arrears are $30000.He lives in a 5 bedroom house with swimmingpool and spa.He puts nothing in his name and filters everything through his [fathers ] bussinesses.IRD are not able to get to his money.Life is tough.
pauper said on 2010-08-16 @ 12:34 NZDT: Report abusive post
I had to go back to work because child support takes a chunk of our money, and our two boys we have together dont get the chance to do outside activities like sports,and why not remove CS from wages first then take tax would be some relief,govt needs to think of all the kids involved,what does a child living with a nana get like $100 per week, when my eldest is 18 we will be paying that a week alone, we have access but need a roof to.There nds to be support but not with each payrise we get.