Durability and GST is durable as it has been in place for 30 years. In that time, resilience the rate has been increased twice. It is a well-regarded scheme because its comprehensiveness and simplicity assist compliance and administration. Fairness and See comment in the revenue raising and collection assessment. accountability Working for Families tax credits System description Working for Families is a package designed to help make it easier to work and raise a family. It pays extra money to many thousands of New Zealand families. Greater financial support is available for: almost all families with children, earning under $70,000 a year; many families with children, earning up to $100,000 a year; and some larger families earning more. There are four types of tax credits: family tax credit; in-work tax credit; minimum family tax credit; and parental tax credit. Inland Revenue administers the programme jointly with the Ministry of Social Development. In the 2015–16 financial year, we distributed $2.4 billion in entitlements to support families. Key legislation Income Tax Act 2007 System agencies Inland Revenue (Policy and Delivery) Treasury (Policy) Ministry of Social Development (Policy and Delivery) Effectiveness The Working for Families tax credit system (WfF) is generally effective in providing low to middle income families with regular payments. Payments are easy to apply for and the majority of services are available online either through Inland Revenue or MSD. Around 70 percent of New Zealand families with dependent children receive Working for Families tax credits either through Inland Revenue or MSD. In order to receive regular payments families must estimate their anticipated earnings for the coming tax year this can be difficult – and an incorrect estimate can lead to either over or under payment of entitlements. Families can avoid this risk by opting to receive their payments at the end of the year, however this undermines the intent of WfF which is to provide support when it is needed.
Durability and resilience GST is durable as it has been in place for 30 years. In that time, the rate has been increased twice. It is a well-regarded scheme because its comprehensiveness and simplicity assist compliance and administration. Fairness and accountability See comment in the revenue raising and collection assessment. Working for Families tax credits System description Working for Families is a package designed to help make it easier to work and raise a family. It pays extra money to many thousands of New Zealand families. Greater financial support is available for: almost all families with children, earning under $70,000 a year; many families with children, earning up to $100,000 a year; and some larger families earning more. There are four types of tax credits: family tax credit; in-work tax credit; minimum family tax credit; and parental tax credit. Inland Revenue administers the programme jointly with the Ministry of Social Development. In the 2015–16 financial year, we distributed $2.4 billion in entitlements to support families. Key legislation Income Tax Act 2007 System agencies Inland Revenue (Policy and Delivery) Treasury (Policy) Ministry of Social Development (Policy and Delivery) Effectiveness The Working for Families tax credit system (WfF) is generally effective in providing low to middle income families with regular payments. Payments are easy to apply for and the majority of services are available online either through Inland Revenue or MSD. Around 70 percent of New Zealand families with dependent children receive Working for Families tax credits either through Inland Revenue or MSD. In order to receive regular payments families must estimate their anticipated earnings for the coming tax year – this can be difficult and an incorrect estimate can lead to either over or under payment of entitlements. Families can avoid this risk by opting to receive their payments at the end of the year, however this undermines the intent of WfF which is to provide support when it is needed.
2017-other-regulatory-stewardship.docx