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Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 1: What this subpart does

You could also call this:

“This subpart explains Working for Families tax credits and how they're calculated”

This part of the law explains how Working for Families (WFF) tax credits work. These are money payments to help families with children.

You and your partner might be able to get WFF tax credits if you meet certain conditions. The amount you can get is made up of different parts:

  1. The family tax credit, which is money for families with children.
  2. The in-work tax credit, which is extra money for working families. Some families might still get the old child tax credit instead.
  3. The parental tax credit, which is money for new parents.
  4. The minimum family tax credit, which tops up your income to a certain level.
  5. The Best Start tax credit, which is money for families with young children.

When working out how much money you can get, these credits are split into three groups:

  1. Credits that reduce as you earn more money. These are the family tax credit, in-work tax credit (or child tax credit), and parental tax credit.
  2. The minimum family tax credit.
  3. The Best Start tax credit.

This helps the government calculate how much money you should receive from each type of credit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518475.

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Part M Tax credits paid in cash
Entitlements under family scheme

MC 1What this subpart does

  1. This subpart provides the rules for determining whether a person and their spouse, civil union partner, or de facto partner are entitled to WFF tax credits as entitlements and tax credits under the family scheme.

  2. The WFF tax credit is the amount of a person's entitlement and tax credit made up of—

  3. the family tax credit calculated under section MD 3 (Calculation of family tax credit):
    1. the in-work tax credit, see sections MD 4 to MD 10 (which relate to the entitlement to and calculation of the in-work tax credit), or the child tax credit continued under section MZ 1 (Entitlement to child tax credit):
      1. the parental tax credit, see sections MD 11 and MD 12 (which relate to the entitlement to and calculation of the parental tax credit):
        1. the minimum family tax credit, see section ME 1 (Minimum family tax credit):
          1. the Best Start tax credit, see section MG 1 (Best Start tax credit entitlement).

            1. For the purposes of the calculation of an amount of a WFF tax credit, entitlements and tax credits under the family scheme are divided into—

            2. abating WFF tax credits, made up of the family tax credit, in-work tax credit or child tax credit, and the parental tax credit:
              1. the minimum family tax credit:
                1. the Best Start tax credit.

                  1. Repealed
                  Compare
                  Notes
                  • Section MC 1(1): amended, on , by section 458(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(2) heading: substituted, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(2): substituted, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(2)(d): amended, on , by section 12(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                  • Section MC 1(2)(e): inserted, on , by section 12(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                  • Section MC 1(3) heading: substituted, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(3): substituted, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(3)(b): amended, on , by section 12(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                  • Section MC 1(3)(c): inserted, on , by section 12(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                  • Section MC 1(4) heading: repealed, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1(4): repealed, on , by section 458(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms abating WFF tax credit: inserted, on , by section 458(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms Best Start tax credit: inserted, on , by section 12(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                  • Section MC 1 list of defined terms family assistance credit: repealed, on , by section 458(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms family plus: repealed, on , by section 458(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms family support: repealed, on , by section 458(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms in-work payment,: repealed, on , by section 458(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms in-work tax credit: inserted, on , by section 458(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms minimum family tax credit: inserted, on , by section 458(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 list of defined terms WFF tax credit: inserted, on , by section 458(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                  • Section MC 1 compare note: amended (with effect on 1 April 2008), on , by section 353 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).