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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"

Illustration for Income Tax Act 2007

You get a FamilyBoost tax credit for a tax credit quarter under section MH 3. If your tax credit income for that quarter is more than $35,000, you need to calculate the abatement amount. The abatement amount is calculated at 7 cents for each complete dollar over $35,000. You calculate the abatement amount for the tax credit quarter. If your tax credit income is $57,286 or more, the abatement amount is $1,560. In this case, your FamilyBoost tax credit amount under section MH 3(2) and (3) is zero.

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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.

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Topics:
Money and consumer rights > Taxes
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Part MTax 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 7 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 $57,286 or more, the abatement amount is $1,560 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 2025), on , by section 5(1) (and see section 5(3) for application) of the Income Tax (FamilyBoost) Amendment Act 2025 (2025 No 50).
  • 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 2025), on , by section 5(2) (and see section 5(3) for application) of the Income Tax (FamilyBoost) Amendment Act 2025 (2025 No 50).
  • 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).