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
Famous quotes containing the words withdrawal of, withdrawal and/or tax:
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“A separation situation is different for adults than it is for children. When we were very young children, a physical separation was interpreted as a violation of our inalienable rights....As we grew older, the withdrawal of love, whether that meant being misunderstood, mislabeled or slighted, became the separation situation we responded to.”
—Roger Gould (20th century)
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