After Inland Revenue receives a Child Support payment, it can take a while for the money to get to the receiving parent or carer.
Generally, a parent paying Child Support must pay by the 20th of the month following the month that the payment is for. For example, the payment for the month of June must be paid to Inland Revenue by 20 July. Inland Revenue passes on the payment to the other parent or carer by 7 August.
When these timeframes were first set they took into account things such as cheque clearance times that are no longer relevant. Payroll and banking systems are more modern now, and fewer people use cheques.
With Inland Revenue’s new tax administration system, payments would be able to be passed on to the receiving parent or carer as soon as the funds have been received and processed.
The Government is also proposing to allow people to choose when they receive their Child Support payment. Some parents might like to have Child Support paid at the same time as their Working for Families payment. Some carers who live overseas may not want frequent payments of Child Support because of the bank fees.