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Family Incomes Package

  • $2b package
  • To provide better rewards for hard work, help lower-income families with young children meet their living costs, and improve incomes for those with high housing costs.
Wages icon

Tax thresholds

Increases the $14,000 income tax threshold to $22,000, and the $48,000 threshold to $52,000. This provides a tax reduction of $11 a week to people earning $22,000 or more rising to $20 per week for anyone earning $52,000 or more.

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Independent Earner Tax Credit

Independent Earner Tax Credit will be discontinued. Those claiming it are fully compensated by the tax threshold adjustments.

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Family Tax Credit

Increases the maximum credit for the first child under 16 by $9 a week, and for each subsequent child under 16 by between $18 and $27 a week. Also increases the abatement rate to 25 per cent, and reduces the abatement threshold to $35,000.

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Accommodation Supplement

Increases the maximum payment rates for a two person household by between $25 and $75 a week, and for larger households by between $40 and $80 a week. Changes to Accommodation Supplement areas will provide further gains for some families.

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Accommodation Benefit

Increases maximum weekly payments by up to $20 for students to reflect increasing housing costs for students.

The Family Incomes Package will benefit around 1,340,000 families in New Zealand by, on average, $26 per week from 1 April 2018. Around 750,000 superannuitants and around 41,000 students will also benefit from the Family Incomes Package.

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