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Important information for families

Important information for families

Family Assistance credits become available to about 85,000 middle-income families from 1 April


Over the next two weeks more than half a million households will be encouraged to check whether they are entitled to tax relief under the Working for Families package.

An estimated 85,000 middle-income New Zealand families will become eligible for Family Assistance tax credits for the first time as part of Working for Families from 1 April.

The Working for Families package is aimed at making it easier to work and raise a family.

Working for Families information brochures will be sent to 535,000 households outlining the new increased income limits. The rate at which payments reduce is also changing, and an In-Work Payment is being introduced to replace the Child Tax Credit as a new entitlement for working families.

These changes mean that from 1 April a family earning $45,000 per year with two young children will receive $277 per fortnight in Family Assistance, which is an increase of $231.

A couple with four children earning $90,000 will be eligible for Family Assistance tax credits for the first time. They will be better off by $3,976 a year.

"We want to make sure families who are eligible know about the changes, which is why we're getting the information to their door," Minister for Social Development and Employment David Benson-Pope said.

The household mailer has detailed information about the package, who qualifies and how to get it. It also profiles families with different incomes and circumstances to demonstrate how the changes will make families better off.

David Benson-Pope said getting it to the right people involves using census data to identify locations and streets where households are most likely to match the profile of families who will be entitled to some or all parts of the Working for Families package.

"We did this last year prior to the April 2005 changes and found that sending information to households is a very effective way of reaching our target audience," David Benson-Pope said.


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