Withdrawal of Tax Credits
The level of assistance to individual households depends on their income and on the number and age of children.
The rate of withdrawal (the abatement rate) for the Family Tax Credit, Parental Tax Credit and the In-Work Tax Credit comprises 20%. An abatement-free threshold of $36,350 exists.
The Minimum Family Tax Credit consists of a "top-up" payment, so that regardless of the amount of income earned, it gets topped up to the minimum amount per week (currently $434 after tax). This comprises effectively a 100% withdrawal with earned income up to the set income-level.
Some New Zealand households also receive money from the increased income-thresholds and rates for Accommodation Supplement and Childcare Assistance. These two types of assistance have separate withdrawal rates.
Read more about this topic: Working For Families
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