The Families Package will:
- repeal the tax threshold changes, reinstate the independent earner tax credit, and repeal Working for Family tax credit changes legislated as part of the Budget 2017 Family Incomes Package
- boost incomes for low-and middle-income families by increasing payments of family tax credit, and raising the Working for Families tax credit abatement threshold.
- increase financial assistance provided to caregivers receiving Orphan's Benefit and Unsupported Child's Benefit
- introduce a Best Start tax credit to help families with costs in a child's early years
- introduce a Winter Energy Payment to help older New Zealanders and those in receipt of a main benefit to heat their homes over winter, and
- implement changes to Accommodation Supplement
The legislation will come into force on the date on which it receives the Royal assent except as follows:
Income Tax Act 2007
- The Best Start tax credit comes into force on 1 July 2018.
- The Taxation (Budget Measures: Family Incomes Package) Act 2017 is repealed effective 29 May 2017 to remove the personal tax cuts in that Act, and to re-instate the independent earner tax credit (IETC)
- alteration to family tax credits, for the 2018/19 tax year will be effective 1 April 2018
- alteration to family tax credits, for the 2019/20 tax year and later will be effective 1 April 2019
Social Security Act 1964
- The winter energy payment (WEP) comes into force on 1 July 2018. In future years the WEP will be paid from May to September. The WEP is intended to support those in receipt of a main benefit, New Zealand Superannuation or a Veteran's Pension to heat their homes in winter by increasing the amount of money available to them over the winter months. the WEP is a payment of $450 a year for single people, and $700 for couples or those with dependent children. Main benefits include Jobseeker Support, Supported Living Payment, Sole Payment Support, Youth Payment, and Young Parent Payment. Recipients can choose to opt out.
On 14/12/17 the (BPS) Budget Policy Statement was released.
Following are some of the stated policies:
- Student allowances and living cost loans will increase by $50 a week from 1 January 2018.
- Separate legislation has been passed to increase Paid Parental Leave, to take effect from 1 July 2018.
- Legislation will soon be introduced to ban overseas speculators from buying existing houses, and a directive has been issued to tighten criteria on purchases of rural land-Overseas Investment Amendment Bill Introduced on 14 December 2017.
- Work has begun on establishing a Housing Commission and starting the KiwiBuild programme.
- Legislation will soon be introduced to make medicinal cannabis available for people with terminal illnesses or in chronic pain.
- Contributions to the New Zealand Superannuation Fund will resume on 15 December 2017 to help safeguard the provision of universal superannuation at age 65.
- The minimum wage will increase to $16.5 an hour, to take effect from 1 April 2018, and legislation will be introduced to improve fairness in the workplace.
Reduce the level of net core crown debt to 20% of GDP within five years of taking office.