We are investing $2 billion in our Family Incomes Package, and 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:
1) 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.
2) 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.
3) 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.
4) 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.