30 August 2010
Media release:

Proposals to increase the integrity of Working for Families go too far

Suggested changes to improve the fairness of Working for Families may
actually cost the Government more than it will save, according to the
New Zealand Institute of Chartered Accountants' Tax Director Craig
Macalister.

"The paper released today that proposes introducing rules to bring new
forms of income into the net for determining Working for Families tax
credits, student allowances and certain community services cards goes
too far," says Mr Macalister.

"While we understand the problem the Government is trying to tackle and
support shoring up the integrity of the rules, the proposals are likely
to cross over the cost-benefit boundary and may cost the Government more
than it will save.

"The rules will also be fraught with technicalities and equitable
anomalies and are about as likely to be understood by taxpayers as the
Wellington trains timetable," says Mr Macalister.

ENDS