Help for work tax credits for families is enacted

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A boost to Working for Families tax credits, as part of a financial support program that will improve the situation of 346,000 families, was enacted late last night.

Revenue Minister David Parker said the measures would increase incomes for those receiving the Family Tax Credit, Best Start Tax Credit and Minimum Family Tax Credit.

“People who receive the family tax credit will benefit from nearly $ 15 per week for the oldest in a family and about $ 13 per 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, ”said David Parker.

The Tax Law (COVID-19 Alimony Payment and Work Tax Credits for Families) will also increase the abatement rate for the Family Tax Credit and the Work Tax Credit to to ensure that support is targeted to low-income families, who need it most.

“This change will mean that people with family incomes below $ 40,000 will benefit the most, with an average increase of $ 26 per week,” he said.

The legislation also introduces a new COVID-19 support payment framework to ensure that future COVID-19 support payment schemes are more flexible and no longer depend on a change in alert levels to trigger them.

“Because we will be moving 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 that this support can continue. to be available to businesses if needed, ”said David Parker.

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

(With contributions from the New Zealand government press release)


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