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Income Tax Act 2007

Tax credits paid in cash - FamilyBoost tax credits

MH 5: FamilyBoost tax credit abatement

You could also call this:

“How much FamilyBoost tax credit you get if you earn over $35,000”

When you get a FamilyBoost tax credit for a tax credit quarter, and your tax credit income for that quarter is more than $35,000, this section works out the abatement amount. The abatement amount is calculated at a rate of 9.75 cents for each complete dollar of your tax credit income that is greater than $35,000. You can find out more about the FamilyBoost tax credit in section MH 3.

If your tax credit income for the tax credit quarter is $45,000 or more, the abatement amount is $975. In this case, your FamilyBoost tax credit amount under section MH 3(2) and (3) is zero. This means you will not get any FamilyBoost tax credit if your income is $45,000 or more.

You need to know your tax credit income to work out the abatement amount. The abatement amount is used to reduce the amount of FamilyBoost tax credit you get.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS976045.

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"What 'tax credit income' means and how it's calculated for tax credits"

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Part M Tax credits paid in cash
FamilyBoost tax credits

MH 5FamilyBoost tax credit abatement

  1. When a person is entitled to a FamilyBoost tax credit for a tax credit quarter under section MH 3 and the person’s tax credit income for that quarter is greater than $35,000, this section calculates the abatement amount for the purposes of section MH 3(3)(b).

  2. Subject to subsection (3), the abatement amount is calculated at the rate of 9.75 cents for each complete dollar of the person’s tax credit income for the tax credit quarter that is greater than $35,000.

  3. If the person’s tax credit income for the tax credit quarter is $45,000 or more, the abatement amount is $975 and the FamilyBoost tax credit amount under section MH 3(2) and (3) is zero.

Notes
  • Section MH 5: inserted, on , by section 14 of the Taxation (Budget Measures) Act 2024 (2024 No 19).
  • Section MH 5(1): amended (with effect on 1 July 2024), on , by section 113(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section MH 5(2): amended (with effect on 1 July 2024), on , by section 113(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section MH 5(3): amended (with effect on 1 July 2024), on , by section 113(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section MH 5 list of defined terms quarter: repealed (with effect on 1 July 2024), on , by section 113(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
  • Section MH 5 list of defined terms tax credit quarter: inserted (with effect on 1 July 2024), on , by section 113(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).