The point of having a strong economy is to enable all Kiwi families to share in the country's success. To do so we are investing $2 billion in our Family Incomes Package. We are especially focused on helping low income families with children and steep housing costs get ahead. Here are the top 4 takeaways of the Package:
Increasing the $14,000 income tax threshold to $22,000, and the $48,000 tax threshold to $52,000.
Anyone earning more than $22,000 will receive a tax reduction of $11 a week, or $572 annually. Anyone making over $52,000 will receive a tax reduction of $20 per week, or $1040 annually.
- We are putting more money back into the pocket of hard working Kiwis.
Removing the Independent Earner Tax Credit of up to $10 a week.
- Anyone who used to claim this credit will still receive the funds. It instead is going to through the increase in tax threshold above.
- We are making it easier for lower income families to receive tax reductions back.
Lifting the Family Tax Credit rates for young children to those of children aged 16 to 18.
- Lower income families could expect their tax credit per child to increase anywhere between, $9 to $27 per week, or $468 to $1404 annually, depending on the age of their child.
- Roughly 310,000 families will benefit from this change.
Increases Accommodation Supplement rates for a two person household to be $25 and $75 a week, while the maximum rates for larger households will increase between $40 and $80 a week.
- Lower income families will be receiving more funding for their housing.
- Students who are receiving the allowance could receive additional funds up to $20, per week, as well.