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Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 6: When person does not qualify

You could also call this:

“When you might not qualify for tax credits due to other benefits”

You might not qualify for certain tax credits during a relationship period if you receive specific benefits or payments. Here’s what you need to know:

You can’t get an abating WFF tax credit or a Best Start tax credit if you receive a parent’s allowance or a children’s pension from Veterans’ Support Act 2014.

You can’t get an in-work tax credit, parental tax credit, or minimum family tax credit if you receive:

  • A main benefit
  • A parent’s allowance or a children’s pension

You can’t get a Best Start tax credit for a child if you receive:

  • A parental leave payment or preterm baby payment for that child
  • A parental tax credit for that child
  • A parent’s allowance or a children’s pension for that child

Remember, these rules are about specific periods and depend on what other benefits or payments you’re getting at the time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518484.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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MC 5: Third requirement: residence or entitlement to emergency benefit, or

“You must live in New Zealand or be eligible for an emergency benefit”

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MC 7: When spouse or partner entitled under family scheme, or

“When you and your partner qualify for family tax credits for different children”

Part M Tax credits paid in cash
Entitlements under family scheme

MC 6When person does not qualify

  1. Despite sections MC 3 to MC 5, a person does not qualify for—

  2. an abating WFF tax credit or a Best Start tax credit if, during the relationship period, they receive a parent's allowance continued by clause 3 of Schedule 1 of the Veterans' Support Act 2014 or a children's pension under section 72 or 75 of that Act:
    1. an in-work tax credit, parental tax credit, or minimum family tax credit if, during the relationship period, they receive—
      1. a main benefit; or
          1. a parent’s allowance or a children's pension:
          2. a Best Start tax credit for a dependent child in relation to a period, if they receive—
            1. a parental leave payment or preterm baby payment, under Part 7A of the Parental Leave and Employment Protection Act 1987, for the dependent child in relation to the period:
              1. a parental tax credit, in relation to the dependent child:
                1. a parent’s allowance or a children’s pension, in relation to the dependent child.

                Compare
                Notes
                • Section MC 6(a): amended, on , by section 14(1) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                • Section MC 6(a): amended, on , by section 278 of the Veterans' Support Act 2014 (2014 No 56).
                • Section MC 6(b): amended, on , by section 460(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6(b)(i): replaced, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
                • Section MC 6(b)(ii): repealed (with effect on 1 April 2008), on , by section 355(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                • Section MC 6(b)(iii): amended, on , by section 14(2) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                • Section MC 6(b)(iii): amended, on , by section 278 of the Veterans' Support Act 2014 (2014 No 56).
                • Section MC 6(c): replaced (with effect on 1 July 2018), on , by section 233(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                • Section MC 6 list of defined terms abating WFF tax credit: inserted, on , by section 460(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 list of defined terms Best Start tax credit: inserted, on , by section 14(3) of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
                • Section MC 6 list of defined terms dependent child: inserted (with effect on 1 July 2018), on , by section 233(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                • Section MC 6 list of defined terms family assistance credit: repealed, on , by section 460(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 list of defined terms family tax credit: repealed, on , by section 460(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 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 MC 6 list of defined terms in-work tax credit: inserted, on , by section 460(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 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 MC 6 list of defined terms minimum family tax credit: inserted, on , by section 460(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 list of defined terms parental tax credit: inserted, on , by section 460(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                • Section MC 6 list of defined terms veteran's pension: repealed, on , by section 113 of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
                • Section MC 6 compare note: amended (with effect on 1 April 2008), on , by section 355(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).