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New Zealand
| Total population (m.): | 4.3 |
| GDP per capita (USD): | 30439 |
Family Benefits
Regulatory Framework
Current laws: 1973 (Social Security Amendment Act, Public Act No. 34; domestic purposes benefits), 1978 (Social Security Amendment Act, Public Act No. 58; handicapped child's allowance, renamed child disability allowance in 1998), 1999 (Taxation - Parental Tax Credit - Act, Public Act No. 62; parental tax credit), 2004 (Taxation - Working for Families - Act, Public Act No. 53; family tax credit, child tax credit, minimum family tax credit, and parental tax credit), and 2007 (Income Tax Act 2007, Public Act No. 97).
Type of program: Universal and social assistance system.
Type of program: Universal and social assistance system.
Coverage
Parents, caregivers, and families with dependent children who meet the residency criteria.
Note: It is possible to be eligible for more than one tax credit and allowance.
Note: It is possible to be eligible for more than one tax credit and allowance.
Source of funds
Insured person: None.
Self-employed person: None.
Employer: None.
Government: The total cost is financed from general revenues.
Self-employed person: None.
Employer: None.
Government: The total cost is financed from general revenues.
Qualifying conditions
Family allowances
Domestic purposes benefit: Paid to single parents aged 18 or older or to parents who have been married or were in a civil union caring for a dependent child younger than age 18 or a person caring for someone (other than a spouse) who would otherwise be hospitalized. The parent must reside in New Zealand if the dependent child was born in New Zealand; one of the parents must satisfy the residence criteria if the child was born overseas.
Emergency maintenance allowance: Paid to single parents experiencing hardship who are not eligible for the domestic purposes benefit, the widow's benefit, or any other benefit because of residency or age.
Child disability allowance: Paid to the principal caregiver of a dependent child with a serious disability.
Family tax credit: Paid to families with dependent children aged 17 or younger (age 18 if a student). Subject to a family income test and a residence test to be met by the principal caregiver or the child.
In-work tax credit: Paid to families with dependent children aged 17 or younger (age 18 if a student). A two-parent family must work jointly more than 30 hours a week; single parents must work at least 20 hours a week. The work hours test can be met by parents receiving accident compensation for an injury suffered after January 1, 2006. No eligible parent may receive an income-tested benefit, a student allowance, or a parental allowance under the War Pensions Act 1954.
Minimum family tax credit: Paid to working families with dependent children aged 17 or younger (age 18 if a student) with annual income less than NZ$21,216 (net). A two-parent family must be working jointly more than 30 hours a week; single parents must be working more than 20 hours a week. The work hours test can be met by parents receiving accident compensation for an injury suffered after January 1, 2006. No eligible parent may receive an income-tested benefit or a student allowance.
Parental tax credit: Paid to working families with income under a certain level (depends on the number of children) on the birth of a child. The credit is paid to families who qualify for the family tax credit, the in-work tax credit, or both, but not to parents claiming paid parental leave, or receiving superannuation or income-tested benefits.
Domestic purposes benefit: Paid to single parents aged 18 or older or to parents who have been married or were in a civil union caring for a dependent child younger than age 18 or a person caring for someone (other than a spouse) who would otherwise be hospitalized. The parent must reside in New Zealand if the dependent child was born in New Zealand; one of the parents must satisfy the residence criteria if the child was born overseas.
Emergency maintenance allowance: Paid to single parents experiencing hardship who are not eligible for the domestic purposes benefit, the widow's benefit, or any other benefit because of residency or age.
Child disability allowance: Paid to the principal caregiver of a dependent child with a serious disability.
Family tax credit: Paid to families with dependent children aged 17 or younger (age 18 if a student). Subject to a family income test and a residence test to be met by the principal caregiver or the child.
In-work tax credit: Paid to families with dependent children aged 17 or younger (age 18 if a student). A two-parent family must work jointly more than 30 hours a week; single parents must work at least 20 hours a week. The work hours test can be met by parents receiving accident compensation for an injury suffered after January 1, 2006. No eligible parent may receive an income-tested benefit, a student allowance, or a parental allowance under the War Pensions Act 1954.
Minimum family tax credit: Paid to working families with dependent children aged 17 or younger (age 18 if a student) with annual income less than NZ$21,216 (net). A two-parent family must be working jointly more than 30 hours a week; single parents must be working more than 20 hours a week. The work hours test can be met by parents receiving accident compensation for an injury suffered after January 1, 2006. No eligible parent may receive an income-tested benefit or a student allowance.
Parental tax credit: Paid to working families with income under a certain level (depends on the number of children) on the birth of a child. The credit is paid to families who qualify for the family tax credit, the in-work tax credit, or both, but not to parents claiming paid parental leave, or receiving superannuation or income-tested benefits.
Cash benefits for insured workers
Family allowances
Domestic purposes benefit: NZ$278.04 (net) a week is paid for single parents. Other rates depend on age, civil status, number of dependents, and income. The benefit is paid after a waiting period of 1 to 2 weeks, depending on previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.30 for each dollar of gross earned income exceeding NZ$4,160 a year and by NZ$0.70 for each dollar of gross earned income exceeding NZ$9,360.
Emergency maintenance allowance: NZ$278.04 (net) a week is paid. The benefit is paid after a waiting period of 1 to 2 weeks, depending on previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.30 for each dollar of gross earned income exceeding NZ$4,160 a year and by NZ$0.70 for each dollar of gross earned income exceeding NZ$9,360.
Child disability allowance: NZ$42.94 a week is paid. There is no income test and the benefit is not taxable.
Family tax credit: Up to NZ$99.96 a week is paid for the first child and NZ$89.44 a week for each additional child, depending on the age of the children.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding NZ$36,827.
In-work tax credit: Up to NZ$60 is paid a week for up to three children and NZ$15 a week for each additional child.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding NZ$36,827.
Minimum family tax credit: A guaranteed net income for working families of NZ$20,800 a year.
Parental tax credit: The parental tax credit is NZ$150 (net) a week per qualifying child and is paid for the first 8 weeks after the birth or adoption of a child.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding an income threshold determined by the number of dependent children in the family.
Benefit adjustment: The domestic purposes benefit, the emergency maintenance allowance and the child disability allowance are adjusted on April 1, according to changes in the consumer price index for the previous year. The family tax credit is adjusted when there has been a cumulative 5% increase in the consumer price index. The in-work tax credit and the parental tax credit are subject to periodic review, while the minimum family tax credit is reviewed annually; all three are adjusted at the discretion of the government.
Domestic purposes benefit: NZ$278.04 (net) a week is paid for single parents. Other rates depend on age, civil status, number of dependents, and income. The benefit is paid after a waiting period of 1 to 2 weeks, depending on previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.30 for each dollar of gross earned income exceeding NZ$4,160 a year and by NZ$0.70 for each dollar of gross earned income exceeding NZ$9,360.
Emergency maintenance allowance: NZ$278.04 (net) a week is paid. The benefit is paid after a waiting period of 1 to 2 weeks, depending on previous income and family circumstances.
Income test: The benefit is reduced by NZ$0.30 for each dollar of gross earned income exceeding NZ$4,160 a year and by NZ$0.70 for each dollar of gross earned income exceeding NZ$9,360.
Child disability allowance: NZ$42.94 a week is paid. There is no income test and the benefit is not taxable.
Family tax credit: Up to NZ$99.96 a week is paid for the first child and NZ$89.44 a week for each additional child, depending on the age of the children.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding NZ$36,827.
In-work tax credit: Up to NZ$60 is paid a week for up to three children and NZ$15 a week for each additional child.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding NZ$36,827.
Minimum family tax credit: A guaranteed net income for working families of NZ$20,800 a year.
Parental tax credit: The parental tax credit is NZ$150 (net) a week per qualifying child and is paid for the first 8 weeks after the birth or adoption of a child.
Income test: The total benefit is reduced by NZ$0.20 for each dollar of gross earned income exceeding an income threshold determined by the number of dependent children in the family.
Benefit adjustment: The domestic purposes benefit, the emergency maintenance allowance and the child disability allowance are adjusted on April 1, according to changes in the consumer price index for the previous year. The family tax credit is adjusted when there has been a cumulative 5% increase in the consumer price index. The in-work tax credit and the parental tax credit are subject to periodic review, while the minimum family tax credit is reviewed annually; all three are adjusted at the discretion of the government.
Administrative organization
Ministry of Social Development (Work and Income) (http://www.msd.govt.nz) administers allowances through its service centers. It also administers family tax credit payments to people with gross annual income below NZ$36,827 who receive a benefit.
Ministry of Social Development,
PO Box 1556,
Wellington 6140,
New Zealand
Tel.: +(64-4) 916 3300
Inland Revenue Department (http://www.ird.govt.nz) administers the in-work tax credit, minimum family tax credit, and parental tax credit, as well as family tax credit for families who are in work or who do not receive a benefit.
Inland Revenue,
PO Box 2198,
Wellington,
New Zealand
Tel.: +(64-4) 890 1500
Ministry of Social Development,
PO Box 1556,
Wellington 6140,
New Zealand
Tel.: +(64-4) 916 3300
Inland Revenue Department (http://www.ird.govt.nz) administers the in-work tax credit, minimum family tax credit, and parental tax credit, as well as family tax credit for families who are in work or who do not receive a benefit.
Inland Revenue,
PO Box 2198,
Wellington,
New Zealand
Tel.: +(64-4) 890 1500
Last survey reply: 01 July 2010
Last ISSA update: 01 July 2010
Exchange rate: US$1.00 = 1.44 New Zealand dollars (NZ$).