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Families with newborns will have up to $ 60 better than the Families package as of today, and Mother Nature will not prevent premature babies from being eligible for the new payment.
The baby's first year is part of a package of measures that come into effect today under the Families program to increase the resources of low- and middle-income families.
Babies born or as of July 1st are eligible for the tax credit. According to the Department of Social Development, the Minister of Social Development, Carmel Sepuloni, said that a departure date was needed, but that "the start date would not have been fair, withhold the parents' payment because Mother Nature determined that their baby would be born sooner than expected.
"The decision to give effect to the payment for babies born on or after 1 July was a pragmatic decision" Sepuloni
The tax credit, which continues during the Second and third years of a child's life for low and middle income families, is expected to benefit approximately 65,000 newborns each year. The tax cuts planned by the national government, will cost $ 5.53 billion over five years.
The government estimates that by 2020/21, when the package will be fully deployed, some 384,000 families with children will be better off by about $ 75 a week. It is predicted that the number of children living in poverty will increase by 64,000, or about 41%, by 2020.
"We know that low and middle income families are struggling with problems like the cost of housing and the cost For these families, when you face financial difficulties, this can really put a lot of stress on the family, especially when you have children to raise, "said Sepuloni at the Herald . The Child Poverty Action Group praised the Working for Families rate increases, but said that after six years of lack of adjustment for average wage and salary increases, costs, the changes were a little over "The rates and thresholds need to be adjusted annually, not just for price increases, but also for wage growth, so we are protecting young people just as we are protecting our perpetrators, "said Susan St John. , the economy of the group
Unfortunately, the rate of "recovery" of Working for families was raised to 25% once the threshold of $ 42,700 reached.
"Families earning more than $ 48,000 will often have less than 30 cents of tax. For every additional dollar, the student loan repayment is 12 cents, the home supplement 25 cents and the salary 25 cents in Working for Families
"It feels like having a 92% tax rate". "These tax credits are best viewed as a way to offset both high taxes and the GST paid by low-income families, and are a way to recognize that more children are reducing capacity."
Other family measures that come into effect on July 1 include:
• An increase in paid parental leave from 18 to 22 weeks, and a further increase to 26 weeks on July 1, 2020
• A Fam rise the tax credit abatement threshold and the Working for Families program, making 26,000 more eligible families, rising to 39,000 in 2020/2021
• An automatic payment of Winter energy for beneficiaries, retirees and former pensioners. Those who do not want can withdraw
• Increase of $ 20.31 per week of Orphans' Benefit, Unpaid Family Allowances, and Child Care Allowance
• Increase in child support supplement. accommodation and benefits announced by the previous government
To check what you are entitled to, visit check.msd.govt.nz and www.ird.govt.nz
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