Family Incomes Package at a Glance
- To provide better rewards for hard work, help lower-income families with young children meet their living costs, and improve incomes for those with high housing costs.
Increases the $14,000 income tax threshold to $22,000, and the $48,000 threshold to $52,000. This provides a tax reduction of $11 a week to people earning $22,000 or more rising to $20 per week for anyone earning $52,000 or more.
Independent Earner Tax Credit
Independent Earner Tax Credit will be discontinued. Those claiming it are fully compensated by the tax threshold adjustments.
Family Tax Credit
Increases the maximum credit for the first child under 16 by $9 a week, and for each subsequent child under 16 by between $18 and $27 a week. Also increases the abatement rate to 25 per cent, and reduces the abatement threshold to $35,000.
Increases the maximum payment rates for a two person household by between $25 and $75 a week, and for larger households by between $40 and $80 a week. Changes to Accommodation Supplement areas will provide further gains for some families.
Increases weekly payments by up to $20 for students to reflect increasing housing costs for students.
The Family Incomes Package will benefit 1,340,000 families in New Zealand by, on average, $26 per week from 1 April 2018. Around 750,000 superannuitants and around 41,000 students will also benefit from the Family Incomes Package.