Financial Support for Parents is undergoing some abrupt changes.
The Introduction of the new Best Start Tax Credit
Best Start is a new payment of $60 a week (up to $3,120 per year) to all eligible parents who have a baby on or after 1 July 2018, no matter what your household income is, until the baby turns one. If your family income in less than $79,000 then you will continue to receive $60 a week until your child three.
You can apply when you register the birth of your baby through the SmartStart website and payments will start after your PPL if you intend to receive PPL or straight away if you are not.
Working for Families Annual Rates and Income Thresholds are on the Rise
|Annual rate of family tax credit||1 April 2018||1 July 2018|
|Eldest child 16 to 18||$5,303||$5,878|
|Eldest child 0 to 15||$4,822|
|Next child 16 to 18||$4,745||$4,745|
|Next child 13 to 15||$3,822|
|Next child 0 to 12||$3,351|
|Working for Families abatement rate||22.5%||25%|
|Working for Families eligible income threshold||$36,350||$42,700|
Paid Parental Leave Duration is Increasing
Paid parental leave is extending from 18 weeks to 22 weeks from 1 July 2018. This also includes an increase in “Keeping in Touch” hours from 40 to 52 hours.
Information is sourced directly from Inland Revenue, for more detailed information please follow the link below. Kapiti Parents Centre are not Financial Advisers. To confirm whether this affects you, we recommend getting in touch with Inland Revenue directly.