Saturday, April 20, 2024

Tax credits to work for families

A boost to Working for Families tax credits was passed into law late last night.

Revenue Minister, David Parker said the measures would lift the incomes of 346,000 families receiving the Family Tax Credit, the Best Start Tax Credit and the Minimum Family Tax credit. 

“People receiving the Family Tax Credit will be better off by almost $15 a week for the eldest child in a family and around $13 a week for subsequent children. In addition, the Best Start Tax Credit will increase from $60 to $65 per week, while the Minimum Family Tax Credit will increase by approximately $34 per week,” Mr Parker said.  

The Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Act will also increase the abatement rate for the Family Tax Credit and the In-Work Tax Credit to ensure support is targeted to lower-income families, who need it most, he said.

“This change will mean that those with family income of less than $40,000 benefit the most, with an average increase of $26 a week,” the Minister said. 

The legislation also introduces a new COVID-19 Support Payment Framework to ensure that future COVID-19 support payments schemes are more flexible and are no longer dependant on a change to Alert levels to trigger them.

“Because we’re going to be shifting from the Alert Level Framework to the COVID-19 Protection Framework, the rules governing how and when COVID-19 support payment schemes can be activated must also be adapted to ensure this support can continue to be available for businesses, if required,” Mr Parker said.

The Working for Families increases, announced by Prime Minister Jacinda Ardern earlier this month, will apply from 1 April 2022.

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