Families Package takes effect today--1st July 2018

Brian from New Lynn

Families with newborn babies will be up to $60 better off a week as the Families Package comes into effect today and Mother Nature won't stop premature babies from being eligible for the new payment.The Best Start payment during a baby's first year is among a raft of measures that take effect today as part of the Families Package to boost the resources of mainly low and middle income families. Babies born or due on or after July 1 are eligible for the tax credit. The tax credit, which continues through the second and third years of a child's life for low and middle income families is expected to benefit around 65,000 newborns annually.The Families Package, which was funded by cancelling the previous National government's planned tax cuts, will cost $5.53 billion over five years.The Government estimates that by 2020/21, when the package is fully rolled out, some 384,000 families with children will be better off by about $75 a week. It is projected to lift the number of children living in poverty by 64,000, or about 41 per cent, by 2020. Unfortunately, the package increased the "clawback" rate of Working for Families to 25 per cent once the $42,700 threshold was reached."It will be common for families earning over $48,000 to lose 30 cents in tax, 12 cents in student loan repayment, 25 cents in Accommodation Supplement, and 25 cents in Working for Families, from every additional dollar.
Other Families Package measures which take effect on July 1 include:
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•An increase in paid parental leave from 18 to 22 weeks, and a further increase to 26 weeks on July 1, 2020
•A rise in the Family Tax Credit and Working for Families abatement threshold, making 26,000 more families eligible, rising to 39,000 by 2020/2021
•An automatic winter energy payment for beneficiaries, superannuitants and veterans pension beneficiaries. Those who don't want it can opt out
•An increase in the orphans benefit, unsupported child benefit and foster care allowance by $20.31 a week.
•Increases in accommodation supplement and benefits, announced by the previous National government.
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To check what you're eligible for, go to check msd.govt.nz and www.ird.govt.nz...
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