From $163 a week extra to nothing
Here we go again. In May, we introduced you to five made-up families, who we used to help explain how the then-National-led Government’s families package would work. During the election campaign, we said hello to the families again, stacking up how Labour’s proposed package compared with National’s.
Today, they’re back once more, sharing the intimate details of their household finances with us so that we can all better understand the changes announced in Grant Robertson’s (big) mini-Budget. And they’re joined for the first time by a house-hunting young couple in Auckland.
These families and their incomes have been fired off to the Ministry of Social Development, who have produced a detailed breakdown of how much money each of them will get. We look at weekly income and how it will differ between a week next March and a week next July, when all of these changes come into force.
The Petrovs: Gain $80.74 a week – $112.60 in winter months
Selena Petrov is a Hamilton solo-mum of three and heads the poorest of our families, receiving roughly $40,040 from the benefit and other forms of assistance.
From July 1, her main benefit should increase $5.70 thanks to usual inflation adjustments. On top of that, the mini-Budget changes mean her Working For Families (WFF) family tax credit will go up from $221.60 to $295.50 – roughly $74. Given she rents, her accommodation supplement will also be boosted – as it would have been whoever won the election, by $100. Finally, between May and September, she will be automatically granted a winter energy payment of $31.82.
This sounds like quite a bonanza, but MSD actually made the point that Petrov was likely already receiving temporary assistance support at this low level of income, and that would drop away with all the changes, removing $99 a week.
The Bennetts: Gain $141.38 a week
The Bennetts are a sole-income family living in Dunedin, with father Fraser bringing in $49,000 a year while Joan looks after the kids.
Things are much less complicated than with the Petrovs. Firstly, their Working For Families family tax credit is boosted from
$166.90 to $265.25, a gain of $98.35 a week. Because they rent a fairly expensive place, their accommodation supplement is bumped up from $40 to $83 – a $43-a-week difference.
Looking past the pure fiscals, we can imagine that Joan might be interested in studying once the kids get older. The new tertiary education package means she would be eligible for a year of free study if she hadn’t studied before, and she could borrow $50 more a week to keep her going throughout.
The Seuseus: Gain $163 a week
Mum and dad Jasmine and Iuta live in a rental in Papakura with Jasmine’s sister, Leilani, and their three kids. Jasmine works as a teacher earning $74,000 while Iuta has a casual job in a restaurant bringing in $14,000.
Their area of Papakura has been getting more expensive recently and, as of July 1, they will be eligible for the accommodation supplement – bringing them in $88 a week. Right behind that change is a big bump to their Working For Families family tax credit, which will be boosted by $50 to $125 a week.
The Martins: Gain $0 a week
Not everyone has kids! Luke and Laura are 31 and 29 and live in Auckland, where they are desperately saving for a house. Luke works as a personal trainer, making $42,000, while Laura works as a sales manager for an ad firm and makes $67,500.
Since they have no children and earn too much to be eligible for any other benefits, they won’t be getting anything.
Laura would have gained $20 a week from National’s tax cuts but no longer will. Luke would have gained $10 a week from them – but since National also cut the independent earners’ tax credit he likely wouldn’t have seen any actual change, other than the credit being much cleaner.
The ChinWilsons: Gain $0 a week
You can also have a child but earn too much to get anything. Dads Steve and Craig both work in Nelson, bringing in $115,000 in total.
Steve is a lawyer making $90,000, while Craig works as a part-time sales assistant and makes $25,000. The Chin-Wilsons make too much to be eligible for Working For Families or the accommodation supplement.
But since their daughter, Lisa, is adopted either of them could take paid parental leave, taking home up to $538.55 a week for up 22 weeks from July 1 next year.
And, if they had a new child, they would be eligible for $60 a week from the Best Start package for the first year.