Wider eligibility for family tax credits

Date: 15th May 2018

Families on low-middle incomes with dependent children could see an increase in their Working for Families tax credit in future income tax returns. A higher payment rate and widening of the eligible income range is being introduced from 1 July 2018.

What are WFFTC?

Working for Families Tax Credits (WFFTC) are payments designed for families with dependent children aged 18 or under.

There are four types of payments:

  • Family tax credit – for families with dependent children
  • In-work tax credit – for families with dependent children who work at least 20 hours a week (sole parents) or 30 hours a week (between a couple)
  • Minimum family tax credit – tops up the annual income (after tax) of a family with dependent children to ensure a minimum family income of $23,816 (with at least 20 hours a week being worked for a sole parent and 30 hours a week between a couple).
  • Parental tax credit – for families with a new-born baby who don’t receive paid parental leave or a Work and Income benefit.

You may qualify for one or more, depending on your personal situation.

New tax credit rates

From 1 July 2018 new tax credit rates and thresholds will apply:

Annual rate of family tax credit 1 April 2018 1 July 2018
Eldest child 16 to 18 $5,303 $5,878
Eldest child 0 to 15 $4,822
Next child 16 to 18 $4,745 $4,745
Next child 13 to 15 $3,822
Next child 0 to 12 $3,351
Working for Families abatement rate 22.5% 25%
Working for Families eligible income threshold $36,350 $42,700

 

If you’re an existing Working for Families customer and affected by the changes, you will receive a Notice of Entitlement in June telling you your new payment amount.

More information

Please get in touch if you would like to know more about your eligibility or how the changes will affect your family.

Go to the Ministry of Social Development’s website or Inland Revenue’s website for more information.



Posted in: Latest News, Queenstown, Wanaka