On 20 December 2017 Parliament passed the Families
Package (Income Tax and Benefits) Bill. According to the Government, the Bill provides
targeted assistance to improve incomes for low and middle-income families with
children.The Government’s focus with
this tax bill is to reduce child poverty.
The Families Package
- boost the incomes of low- and middle-income families with children by increasing the Family Tax Credit and raising the Working for Families abatement threshold
- introduce a Best Start tax credit to help families with costs in a child’s early years
- introduce a Winter Energy Payment to help older New Zealanders and many of our poorest families heat their homes over winter
- increase the rate of Orphan’s Benefit, Unsupported Child’s Benefit and Foster Care Allowance by $20.31 per week
- increase paid parental leave to 26 weeks
- reinstate the Independent Earner Tax Credit (IETC)
- implement the Accommodation Supplement and Accommodation Benefit increases announced in Budget 2017
- repeal the tax cuts and changes to Working for Families announced in Budget 2017.
Please give us a call if you have any questions or
wish to discuss any of the above.