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September 11, 2023
Tax credit short changes poorest whanau
Gideon Porter
Posted On September 11, 2023
Download AudioThe Child Poverty Action Group says both major parties are dragging the chain over tax help for the country’s poorest families.
Spokesperson Susan St John says Working For Families tax credits start being clawed back once people earn over $42,700, at a rate of 27 cents for every extra dollar earned.
Both Labour and National say they will increase the threshold to $50,000 but not until 2026 – when it needs to be about $53,000 now.
Dr St John says a focus on the in work tax credit rather than the family tax credit means the country’s poorest families miss out.
“It is important that Māori, Pasifika, families with disabled children – the ones that are most adversely affected here – really understand the implications and put pressure on the politicians – ask them why this is and support the parties that really understand this issue and would get rid of this discrimination,” Dr St John says.
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