Parents living overseas will soon find it harder to avoid child support payments after New Zealand joined a global initiative making it easier to work with other countries to collect money owed.
Revenue Minister Stuart Nash made the announcement in the Netherlands where he signed New Zealand up to the Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance.
With about $7.7 million in child support currently outstanding, Nash said signing it will "help Inland Revenue find liable parents living overseas and recover payments which until now could only be enforced via a court order in those countries".
The majority of New Zealand parents living overseas - about 12,500 - reside in Australia, where Nash said governments of the day have had "good reciprocal arrangements for collecting these payments for almost 20 years".
Where it's been tricky for Inland Revenue is when New Zealand parents live in countries where the Government doesn't have such a close relationship - meaning about 4200 parents who owe child support often manage to avoid it.
"Voluntary compliance is low," Nash, a Labour MP, said.
"We have limited ability to find and keep in touch with people living in other countries. This agreement will improve that if the parent lives in one of the 42 countries which have signed the Hague Convention."
He said the Government will now be able to seek help from foreign regimes that have signed up to the agreement, to confirm the exact whereabouts of about 3200 liable New Zealand parents who owe payments.
"Those member states will be able to give information to Inland Revenue to allow it to assess the liable parent for child support, taking into account their circumstances," Nash said.
"The support will then be collected by that state government on our behalf."
Nash said signing up to the agreement will also mean New Zealand can play its part in helping other member state signatories ensure liable parents pay child support for their children.
A select committee will still need to consider the agreement and report back to Parliament before it can become law.
It is expected to come into force in April 2021.
