2. SUE MORONEY (Labour) Link to this
to the Minister for Social Development and Employment
How many families will benefit from changes to the Working for Families package from 1 April?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
From 1 April three out of every four New Zealand families with dependent children will be entitled to tax credits through the Working for Families package. From 1 April, therefore, an estimated 85,000 extra families will become entitled to those tax credits, bringing to about 350,000 the total number of New Zealand families eligible for family assistance tax credits under the Working for Families package.
How do families know whether they are one of the three in four families eligible for Working for Families tax credits?
Hon DAVID BENSON-POPE Link to this
Eligibility depends on family income and the number of dependent children. For example, a family with one child under 16 could earn up to $69,320 a year and still qualify, while a family with three young children could earn as much as $93,760 a year and still qualify. Families can easily check their eligibility through the Working for Families and Inland Revenue Department websites, or by phoning or texting the advertised contact numbers.
Sue BradfordWhy, given Labour’s supposed commitment to social equity, will the Minister not reallocate the money given to the Working for Families in-work payment, so that family support is increased to at least $20 a week for all families, including those of the 230,000 children dependent on benefit income, instead of redistributing more and more taxpayers’ money to the better-off?
Hon DAVID BENSON-POPE Link to this
As I said in answer to the member’s question last week, and can confirm, the average weekly amount already received by beneficiary families from the Working for Families components has already increased by an estimated $32 per family.
Hon DAVID BENSON-POPE Link to this
Most OECD countries provide targeted tax assistance to families with dependent children. Australian families are eligible for a family tax benefit on a combined family income of up to about A$90,000, depending on the age and number of children. In the United Kingdom, tax assistance to working families is provided through a child tax credit, for which around 85 percent of families are eligible. Those countries recognise, as does this Government, the need to target tax credits where they are needed and not provide tax cuts for the wealthy.