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 will:

• 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.