New Revenue Minister Peter Dunne is willing to waive up to $500 million of unpaid child support debt. More than half of the record one billion dollar debt consists of penalty fees, which could be wiped under new legislation soon to be introduced to parliament.

The bill includes provision for penalty fees to be waived, provided that liable parents enter some kind of repayment arrangement for their existing debt. Expatriate liable parents accounted for the highest levels of unpaid debt; more than $312 million of the total owed.

A Christchurch father who said he was “squeaky clean”, still owed $25,000 at one point, most of which was penalties incurred because Inland Revenue thought he was paying the wrong rate. “The tax department cannot pick up a mistake for about six months and they continue to charge you penalties” he said.

“If you try and work it out they will not negotiate with you until you have paid the penalties. That’s why so many guys are in debt”. It is hoped the Bill will appear in parliament before Christmas.