More than 80,000 sole parents, caring for 133,000 children, would get an extra $10 a week under a proposal to tackle child poverty.
The final expert group recommends ending the current system where almost all child support paid to sole parents by absent parents - usually fathers - is swallowed up by the Inland Revenue Department to offset the cost of the domestic purposes benefit.
It says passing on child support would make a difference to some of the country's poorest families and would benefit the children by encouraging fathers to stay involved.
"You get more fathers admitting paternity, more fathers who are engaged in their children's lives, more kids getting birthday presents and Christmas presents from their dads," said Children's Commissioner Dr Russell Wills, who commissioned the report.
The cost would be $159 million a year, or $50 million to $60 million to pass on only $10 a week for each child. But Dr Wills said there would be huge offsetting benefits.