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New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - FamilyBoost tax credits

MH 5: FamilyBoost tax credit abatement

You could also call this:

“How your FamilyBoost tax credit may be reduced based on your income”

If you qualify for a FamilyBoost tax credit for a quarter and your tax credit income for that quarter is more than $35,000, the amount you receive might be reduced. This reduction is called an abatement.

For every dollar you earn over $35,000 in a quarter, your FamilyBoost tax credit will be reduced by 9.75 cents. This continues until your tax credit income reaches $45,000 for the quarter.

If your tax credit income for the quarter is $45,000 or more, your FamilyBoost tax credit will be reduced to zero. This means you won’t receive any FamilyBoost tax credit for that quarter.

The calculations for the FamilyBoost tax credit, including how much you might receive and how it’s reduced based on your income, are explained in section MH 3.

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

Topics:
Money and consumer rights > Taxes
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“How your income is calculated to determine FamilyBoost tax credit eligibility”

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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 quarter under section MH 3 and the person’s tax credit income for the 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 quarter that is greater than $35,000.

  3. If the person’s tax credit income for the 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).