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Income Tax Act 2007

Tax credits paid in cash - General provisions

MA 8: Some definitions for family scheme

You could also call this:

“Definitions of key terms for family tax credit calculations”

This section explains important terms used in the family scheme for tax credits. Here’s what you need to know:

An abating WFF tax credit is a tax credit that reduces as your income increases. It’s calculated using a formula in the law.

The Best Start tax credit is for families with young children. It has two parts - a regular payment and an abatement part that reduces as your income goes up.

The chief executive refers to the person in charge of the government department that looks after the Social Security Act.

Family scheme income is the amount used to work out if you can get family tax credits. It’s based on your income with some adjustments.

A New Zealand resident is someone who normally lives here. It doesn’t include people who are here illegally or only on a temporary visa.

Social assistance payments include main benefits, veteran’s pensions, NZ superannuation, some student allowances, and some accident compensation payments.

WFF tax credits include the abating WFF tax credit, the minimum family tax credit, and the Best Start tax credit.

There are also specific definitions for other terms like family tax credit, in-work tax credit, and parental tax credit.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518423.

Topics:
Money and consumer rights > Taxes
Family and relationships > Children and parenting
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“Defining who qualifies as a full-time worker or earner for family tax credits”

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MB 1: Adjustments for calculation of family scheme income, or

“How to adjust your income when calculating family tax credits”

Part M Tax credits paid in cash
General provisions

MA 8Some definitions for family scheme

  1. In subparts MB to MG and MZ,—

    abating WFF tax credit means a tax credit under section MD 1 (Abating WFF tax credit)

      Best Start credit abatement means the component of the Best Start tax credit that is calculated using the formula in section MG 3 (Best Start credit abatement)

        Best Start tax credit means a tax credit under section MG 1 (Best Start tax credit entitlement)

          chief executive means the chief executive of the department currently responsible for administering the Social Security Act 2018

            child tax credit means the component of the WFF tax credit that is calculated using the formula in section MZ 2 (Calculation of child tax credit)

              family assistance credit

                family credit abatement means the component of the abating WFF tax credit that is calculated using the formula in section MD 13 (Calculation of family credit abatement)

                  family plus

                    family scheme

                      family scheme income means the amount, described in section MB 1 (Adjustments for calculation of family scheme income), based on a person's net income and adjusted as provided by subpart MB (Adjustment of net income for family scheme), on which an entitlement and a tax credit under the family scheme is based

                        family support

                          family tax credit means the component of the abating WFF tax credit calculated using the formula in section MD 3 (Calculation of family tax credit)

                            in-work payment

                              in-work tax credit means the component of the abating WFF tax credit calculated using the formula in section MD 10 (Calculation of in-work tax credit)

                                minimum family tax credit means a tax credit under section ME 1 (Minimum family tax credit)

                                  net family scheme income

                                    New Zealand resident—

                                    1. means ordinarily resident; and
                                      1. does not include being unlawfully resident in New Zealand; and
                                        1. does not include being lawfully resident in New Zealand only because of holding a temporary entry class visa

                                          parental tax credit means the component of the abating WFF tax credit calculated using the formula in section MD 12

                                            social assistance payment means—

                                            1. a main benefit; or
                                              1. a veteran’s pension; or
                                                1. New Zealand superannuation; or
                                                  1. a basic grant or an independent circumstances grant, made under regulations made under section 645 of the Education and Training Act 2020, or a substituted provision; or
                                                    1. an accident compensation earnings-related payment, when the compensation relates to a day forming part of a continuous period of eligibility for the compensation and the day falls after the earlier of—
                                                      1. the day with the same date as the first day of the continuous period of eligibility for compensation and occurring in the third calendar month after that first day; and
                                                        1. the last day of the third calendar month after the first day of the continuous period of eligibility for compensation

                                                        WFF tax credit means a tax credit under—

                                                        1. section MD 1 (Abating WFF tax credit):
                                                          1. section ME 1 (Minimum family tax credit):
                                                            1. section MG 1 (Best Start tax credit entitlement)

                                                            Notes
                                                            • Section MA 8: amended, on , by section 10(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                                                            • Section MA 8 abating WFF tax credit: inserted, on , by section 455(1)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 Best Start credit abatement: inserted, on , by section 10(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                                                            • Section MA 8 Best Start tax credit: inserted, on , by section 10(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                                                            • Section MA 8 chief executive: amended, on , by section 459 of the Social Security Act 2018 (2018 No 32).
                                                            • Section MA 8 child tax credit: amended, on , by section 455(1)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 family assistance credit: repealed, on , by section 455(1)(c) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 family credit abatement: amended, on , by section 455(1)(d) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 family plus: repealed, on , by section 455(1)(e) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 family scheme: repealed, on , by section 10(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                                                            • Section MA 8 family scheme income: amended, on (applying for the 2014–15 and later income years), by section 107(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
                                                            • Section MA 8 family support: repealed, on , by section 455(1)(f) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 family tax credit: substituted, on , by section 455(1)(g) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 in-work payment: repealed, on , by section 455(1)(h) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 in-work tax credit: inserted, on , by section 455(1)(h) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 minimum family tax credit: inserted, on , by section 455(1)(i) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 net family scheme income: repealed, on , by section 455(1)(j) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 New Zealand resident: substituted, on , by section 406(1) of the Immigration Act 2009 (2009 No 51).
                                                            • Section MA 8 parental tax credit: amended, on , by section 455(1)(k) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 social assistance payment paragraph (a): replaced, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section MA 8 social assistance payment paragraph (d): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                                                            • Section MA 8 WFF tax credit: replaced, on , by section 10(4) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                                                            • Section MA 8 list of defined terms abating WFF tax credit: inserted, on , by section 455(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 list of defined terms entitlement period: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                                                            • Section MA 8 list of defined terms full-time earner: repealed (with effect on 1 April 2008), on , by section 350 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                            • Section MA 8 list of defined terms income-tested benefit: repealed, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section MA 8 list of defined terms main benefit: inserted, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                                                            • Section MA 8 list of defined terms minimum family tax credit: inserted, on , by section 455(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 list of defined terms WFF tax credit: inserted, on , by section 455(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                                                            • Section MA 8 list of defined terms family assistance credit: repealed, on , by section 455(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).