Families

Kiwi families will get the most out of this year’s pre-election efforts.

WHAT ARE THE CHANGES?

Two of the income-tax thresholds will rise. The $14,000 threshold rises to $22,000; the $48,000 threshold rises to $52,000.

The Working For Families’ Family Tax Credit is up for some recipients and down for others.

The accommodation supplement increases and more areas will qualify for higher payments.

WHAT WILL YOU GET?

The Government says 1.3 million working-age families will get an average of $26 extra per week.

If you earn $22,000 or more a year, you will get $10.70 extra a week. Anyone earning more than $52,000 will receive $20.38 more a week.

The higher Family Tax Credit, available to children aged 16 to 18, will be expanded to cover all children – an increase of $9.25 a week for the first child and between $17.75 to $26.81 a week for each subsequent child.

The accommodation supplement will rise by $25 to $75 a week for a two-person household and between $40 and $80 a week for larger households. Student allowance recipients in housing stress will get up to $20 more a week in accommodation benefit.

A couple on super will get $13.12 more a week next year.

WHEN WILL I GET IT?

From April 1, 2018.

WHO MISSES OUT?

Individuals with no other state help lose the Independent Earner Tax Credit, worth up to $10 a week, but will get a boost from the tax changes.

The abatement rate changes for the Family Tax Credit will claw some of the gains back – at 25 cents in the dollar if you earn over $35,000 (up from 22.5c at $36,350).

About 200 households will lose a few dollars a week from the accommodation supplement changes.

WHAT WILL IT COST?

Tax changes: $486m in 2017/18, $1.87 billion in 2018/19 Working For Families: $97m in 2017/18, $373m in 2018/19 Accommodation supplement: $88m in 2017/18, $361m in 2018/19 TOTAL: $603m in 2017/18, $2.075b in 2018/19. – Vernon Small