Understanding Ground 5 – High Cost of Contact Worksheet (IR470A) in New Zealand Child Support
In the New Zealand child support system, ensuring the fair assessment of contact costs is essential for both custodial and non-custodial parents. The Ground 5 – High Cost of Contact Worksheet (IR470A) serves as a vital tool for parents seeking an administrative review of their child support obligations when contact costs are significantly higher than usual. This guide aims to clarify the purpose, application process, and key considerations associated with this official form.
The Purpose and Scope of IR470A
The IR470A form is specifically designed for parents or guardians who believe that the standard child support calculation does not adequately reflect the actual expenses incurred to maintain contact with their children. Under Ground 5, applicants can request an administrative review if their contact-related costs exceed 5% of their adjusted income used in the child support assessment. This threshold ensures that only substantial additional expenses are considered, preventing minor costs from affecting the support calculation.
This worksheet is part of the broader process of child support review managed by Inland Revenue (IRD), which is responsible for administering child support arrangements in New Zealand. The form complements the application for an administrative review (IR470) by providing detailed information about the contact costs involved.
When and How to Use the IR470A Form
Applicants should use the IR470A form when they are applying for an administrative review under Ground 5. It is mandatory to complete the IR470A alongside the general review application (IR470). The process can be initiated online through the IRD’s myIR portal, which offers a streamlined digital experience for submitting and managing reviews.
Before completing the form, applicants are encouraged to review the guide titled Helping you to understand child support reviews – IR175. This resource provides detailed explanations about Ground 5 and helps ensure accurate and comprehensive reporting of contact costs.
Key Sections and How to Complete the Worksheet
1. Contact Costs (Annual)
Applicants must calculate their total yearly expenses related to maintaining contact with their children. Eligible costs include travel (by private vehicle, bus, train, or plane), accommodation during contact visits, and other expenses such as phone calls to keep in touch. It is important to note that costs related to enjoying contact, such as meals or entertainment, are not included.
2. Adjusted Income and Cost Comparison
The form requires applicants to provide the adjusted income used in the child support formula, which can be found on recent child support notices. The applicant must multiply this income by 5% to determine the threshold for significant contact costs. The total contact costs are then compared against this threshold to assess whether they warrant a review.
3. Contact Details and Payment Contributions
Applicants are asked to specify the location of the children and their own residence, as well as to detail the nature and frequency of contact over the past year. If the other parent or guardian has contributed financially towards contact costs, this should be disclosed, including the amount paid.
Implications for the Applicant
If the application is successful, the IRD may adjust the child support assessment to account for the higher contact costs. This could result in a reduction of the amount payable or an increase in support received, depending on individual circumstances. The process emphasizes transparency and fairness, ensuring that parents are not unduly burdened by expenses that are genuinely higher than average.
It is important to remember that the IR470A form is a declaration of actual costs. Providing accurate and honest information is essential, as the Inland Revenue will share this information with the other party if requested. This transparency helps uphold the integrity of the child support system and promotes equitable arrangements for all involved.
Final Considerations
Parents and guardians should consult the official IRD resources or seek advice from a qualified professional if they are unsure about completing the IR470A worksheet. The process aims to balance the financial responsibilities of both parents while prioritizing the best interests of the child. By understanding and accurately reporting contact costs, families can ensure that child support arrangements are fair and reflective of their real circumstances.
