“Last relevant income year means,—

• “(a) In a case where a liable parent's taxable income for the most recent income year was derived solely from source deduction payments, the most recent income year:

• “(b) In the case of any other liable parent, the income year immediately preceding the most recent income year:”.

“Most recent income year, in relation to a child support year, means the income year that ended on 31 March immediately preceding the start of that child support year”.

• “(3) For the purposes of this Act, an income year corresponds with a child support year if,—

  • “(a) In relation to a person whose income is assessed under the Tax Administration Act 1994, the income year ends on the last day of the child support year:

  • “(b) In relation to a person who is resident in a country outside New Zealand, the income year of that country ends on a date nearest to the last day of the child support year.

• “(4) For the purposes of subsection (3)(a), if a person's income is assessed in relation to the year ending with the annual balance date of the person's accounts, the corresponding income year is determined in accordance with section 38 of the Tax Administration Act 1994.

• “(5) For the purposes of subsection (3)(b), 30 September in any year is deemed to be nearer to the last preceding 31 March than to the next succeeding 31 March.”

“Child support income amount means,—

• “(a) In a case where the liable parent's taxable income for the most recent income year was derived solely from source deduction payments, the taxable income derived by the liable parent in the most recent income year; or

• “(b) In the case of any other liable parent, the taxable income derived by the liable parent in the income year immediately preceding the most recent income year, inflated by the inflation percentage for the child support year,—

“or, if less, an amount equal to twice the yearly equivalent of the relevant average weekly earnings amount for the most recent income year”.

“Inflation percentage, in relation to a child support year, means the average movement in the all groups index number of the New Zealand Consumer Price Index during the 12-month period that ends with 31 December before the start of that child support year”.

“Relevant average weekly earnings amount, in relation to the most recent income year, means the ordinary time average weekly earnings (for males and females combined), as at mid-February in the income year immediately preceding the most recent income year, as published by the Department of Statistics”.

“38A

• “(1) This section applies where the Commissioner assesses the annual rate of child support payable under a formula assessment by a liable parent whose taxable income for the first 10 months of the most recent income year was derived solely from source deduction payments.

  “(2) If, at the time of making the assessment, the Commissioner is unable to determine the amount of the liable parent's taxable income for the most recent income year, then the Commissioner may make a formula assessment on the basis that the liable parent's child support income amount is the lesser of—

  • “(a) The sum of—

    • “(i) The taxable income derived by the liable parent in the first 10 months of the most recent income year; and

    • “(ii) An amount that is equal to one-fifth of that taxable income; or

  • “(b) An amount equal to twice the yearly equivalent of the relevant average weekly earnings amount for the most recent income year.

  “(3) The Commissioner must, as soon as practicable, amend a formula assessment if—

  • “(a) The Commissioner applies subsection (2) in making the formula assessment; and

  • “(b) The Commissioner subsequently ascertains the liable parent's taxable income for the most recent income year (whether or not an assessment has been made under the Income Tax Act 1976 or the Tax Administration Act 1994 in respect of that year); and

  • “(c) The subsequently ascertained income is more than $500 in excess of, or less than, the figure calculated for the purposes of subsection (2)(a).

  “(4) An assessment amended under subsection (3) must be amended on the basis that the liable parent's taxable income for the most recent income year is, and always has been, the subsequently ascertained income.”

• “(1) Subject to subsection (3), a person may, by written notice given to the Commissioner, elect that the annual rate of child support payable under a formula assessment for the remaining months in a child support year is to be calculated subject to the modifications contained in sections 41 to 44A if—

  • “(a) Before or during the child support year the person estimates that his or her taxable income for the income year corresponding with that child support year will be a particular amount; and

  • “(b) The amount of the estimate is not more than 85% of the person's taxable income for the last relevant income year (as inflated by the inflation percentage for the child support year if the last relevant income year in relation to that person is not the most recent income year).”

• “(2A) An election made by a person under section 40 in relation to a child support year is deemed to be revoked if—

  • “(a) The person makes a later election under that section in relation to the child support year; and

  • “(b) The amount of the estimate is more than 85% of the person's taxable income for the last relevant income year (as inflated by the inflation percentage for the child support year, if required by section 40(1)(b)).”

• “(3) An election is irrevocable, despite subsections (1) and (2A), if an income amount order made after the election comes into force in relation to the person and to the child support year.”

• “(1) If an election made by a person under section 40 in relation to a child support year is revoked under section 42, the person's child support income amount in relation to the child support year (including any days in the child support year preceding the revocation of the election) is to be taken to be, and always to have been, the amount that would have been the person's child support income amount for the year if that election had not been made.”

• “(1) This section applies where the Commissioner makes, under any provision of the Income Tax Act 1976 (other than section 21) or the Income Tax Act 1994 or the Tax Administration Act 1994 (other than section 106), an assessment of taxable income of a person for an income year (being an income year that corresponds with a child support year in which at least 1 election made by that person under section 40 has applied).

• “(1A) The person's child support income amount that is to be used in a formula assessment for that child support year is to be taken to be, and always to have been, the lesser of—

  • “(a) The amount of the taxable income derived by that person in that child support year; or

  • “(b) The child support income amount that would have been used for the purposes of a formula assessment for that child support year if the person had not made any election under section 40.”

• “(a) The enactment of any Act amending the Income Tax Act 1994 or the making of any regulation or Order in Council relating to income tax, during the period commencing on the 1st day of the last month in that child support year and ending with the due date for payments in respect of that month; or

• “(b) The Commissioner making public, during the period commencing on the 1st day of the last month in that child support year and ending with the due date for payments in respect of that month, any ruling in relation to any provision of the Income Tax Act 1994 and that ruling is different from a ruling previously made public by the Commissioner in relation to that provision; or”.

“151A

• “(1) The Commissioner may write-off the whole or part of a debt, and may make alterations in the assessment that are necessary for that purpose, if the debt—

  • “(a) Is repayable by a payee who was a social security beneficiary at any time during a child support year after an election was made by the liable parent that resulted in no child support being payable by the liable parent for the remainder of the child support year under section 40; and

  • “(b) Relates to an amount paid to the payee before the election was made by the liable parent; and

  • “(c) Is repayable to the Commissioner under section 151(1)(c) in relation to a child support debt.

  “(2) The Commissioner may, if the debt has been paid in whole or in part, refund to the payee the whole or any part of the debt that has been paid, with or without writing-off any part of the debt that has not been paid.

  “(3) Any refund made under this section must be paid out of the Crown Bank Account without further appropriation than this section.”

“236

• “(1) This section applies to publication by the Department of Statistics of—

  • “(a) The ordinary time average weekly earnings (for males and females combined); or

  • “(b) The all groups index number of the Consumer Price Index.

  “(2) A correction to those statistics that is published by that department must be disregarded for the purposes of this Act if—

  • “(a) The correction is published at any time after 1 January immediately preceding the start of a child support year; and

  • “(b) The statistics corrected are—

    • “(i) As at mid-February immediately preceding the start of the most recent income year in relation to the ordinary time average weekly earnings (for males and females combined); or

    • “(ii) For the year ending on 31 December immediately preceding the start of the child support year in relation to the all groups index number of the Consumer Price Index.”

“Convention country—

• “(a) Means a country that is a party to the United Nations Convention for the Recovery of Maintenance Abroad done at New York on 20 June 1956; but

• “(b) Does not include Australia:”.