Families Package (Income Tax and Benefits) Act 2017

1: Title
This Act is the Families Package (Income Tax and Benefits) Act 2017.
2: Commencement
1: This Act comes into force on the date on which it receives the Royal assent, except as provided in this section.
2: Subpart 1
3: Section 46
4: Sections 52 55 56 58
5:
6: Subpart 1
7: Subpart 2
8: Subpart 3
9: Subpart 4 clause 5(3) and (4) Section 2(4) amended 18 March 2019 section 357(1) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Section 2(5) repealed 18 March 2019 section 357(2) Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
1: Income tax
1: Best Start tax credit
Amendments to Income Tax Act 2007
3: Income Tax Act 2007 amended
Sections 4 to 23 Income Tax Act 2007 2018-07-01 Income Tax Act 2007 re section 2(2)
4: Section GB 44 amended (Arrangements involving tax credits for families)
1: In section GB 44(1)﻿(b) subparts MA to MF subparts MA to MG
2: In section GB 44(2) subparts MA to MF subparts MA to MG
5: Section HR 8 amended (Transitional residents)
In section HR 8(5) subparts MA to MF subparts MA to MG
6: Section MA 1 amended (What this Part does)
In section MA 1(a) subparts MA to MF subparts MA to MG
7: Section MA 5 amended (Advice from outside agencies)
In section MA 5 subparts MB to MF subparts MB to MG
8: Section MA 6 amended (Avoidance arrangements)
In section MA 6 subparts MB to MF subparts MB to MG
9: Section MA 7 amended (Meaning of full-time earner for family scheme)
In section MA 7(1) subparts MB to MF subparts MB to MG
10: Section MA 8 amended (Some definitions for family scheme)
1: In section MA 8 subparts MB to MF subparts MB to MG
2: In section MA 8 abating WFF tax credit Best Start credit abatement Best Start tax credit
3: In section MA 8 family scheme
4: In section MA 8 WFF tax credit WFF tax credit
a: section MD 1 (Abating WFF tax credit):
b: section ME 1 (Minimum family tax credit):
c: section MG 1 (Best Start tax credit entitlement)
11: Section MB 2 amended (Adjustment for period that is less or more than 1 year)
In section MB 2(2)﻿(a) subparts MB to MF subparts MB to MG
12: Section MC 1 amended (What this subpart does)
1: In section MC 1(2)﻿(d) credit). credit):
e: the Best Start tax credit, see
2: In section MC 1(3)﻿(b) credit. credit:
c: the Best Start tax credit.
3: In section MC 1 Best Start tax credit
13: Section MC 5 amended (Third requirement: residence)
In section MC 5(2)﻿(a)﻿(ii) section MD 1 (Abating WFF tax credit) or ME 1 (Minimum family tax credit) section MD 1 (Abating WFF tax credit), ME 1 (Minimum family tax credit entitlement), or MG 1 (Best Start tax credit entitlement)
14: Section MC 6 amended (When person does not qualify)
1: In section MC 6(a) an abating WFF tax credit an abating WFF tax credit or a Best Start tax credit
2: In section MC 6(b)﻿(iii) pension. pension:
c: a Best Start tax credit, if they receive, in relation to a relevant dependent child,—
i: a parental tax credit:
ii: a parent’s allowance or a children’s pension:
iii: a parental leave payment or preterm baby payment under Part 7A of the Parental Leave and Employment Protection Act 1987.
3: In section MC 6 Best Start tax credit
15: Section MC 10 amended (Principal caregiver)
1: In the heading to section MC 10(2) family tax credit family tax credit, Best Start tax credit
2: In section MC 10(2) sections MD 3 and MZ 1 (which relate to family tax credit and the child tax credit) sections MD 3, MG 1, and MZ 1 (which relate to certain tax credits for families)
16: Section MC 11 amended (Relationship periods and entitlement periods)
In section MC 11(1) subparts MB to MF subparts MB to MG
17: Section MD 11 amended (Entitlement to parental tax credit)
After section MD 11(1)﻿(a)
ab: the dependent child is born before 1 July 2018, and, if the expected due date for the dependent child is on or after 1 July 2018, the person has elected in writing to apply this section; and
18: Section MF 1 amended (Application for payment of tax credit by instalment)
Replace section MF 1(1)﻿(a)
a: a person who is a principal caregiver expects to be entitled, throughout a selected period, to a WFF tax credit; and
19: Section MF 2 amended (When person not entitled to payment by instalment)
1: Replace section MF 2(1)﻿(b)
b: the chief executive is authorised by section 80KN of that Act to pay to the person—
i: an abating WFF tax credit:
ii: a Best Start tax credit; and
c: the chief executive does not ask the Commissioner under section 80KQ of that Act to accept from the person an application for a notice of entitlement.
2: In section MF 2 Best Start tax credit
20: Section MF 4 replaced (Requirements for calculating instalment of tax credit)
Replace section MF 4
MF 4: Requirements for calculating instalment of tax credit
When this section applies
1: This section applies for an instalment by way of tax credit under—
a: section MD 1 (Abating WFF tax credit):
b: section ME 1 (Minimum family tax credit):
c: section MG 1 (Best Start tax credit entitlement). How to calculate instalment: period
2: The Commissioner must calculate the amount of the instalment as if the calculation period referred to in section MF 3 were a relationship period. How to calculate instalment: amount
3: The Commissioner must calculate the amount of the instalment using—
a: a value for family scheme income as directed by section MF 3(2)﻿(c); and
b: the amounts of family tax credit, in-work tax credit, child tax credit, parental tax credit, family credit abatement, minimum family tax credit, Best Start tax credit, and Best Start credit abatement set out in sections MD 3, MD 4, MD 11, MD 12, MD 13, ME 1, MG 2, and MG 3. Instalment shown in complete dollars
4: The instalment is to be shown in a notice of entitlement in complete dollars. amount, Best Start credit abatement, Best Start tax credit, child tax credit, Commissioner, family credit abatement, family scheme income, family tax credit, in-work tax credit, minimum family tax credit, notice of entitlement, parental tax credit, relationship period, tax credit
21: Section MF 7 amended (Orders in Council)
1: After section MF 7(1)﻿(d)
db: change the amounts in section MG 2(2)﻿(a) (Best Start tax credit) by an amount that—
i: corresponds to the movement in the New Zealand Consumers Price Index that has not yet been taken into account by an increase:
ii: is rounded up to the nearest whole dollar, without affecting the calculation of later increases made under this paragraph:
dc: change the amounts in section MG 3(2)﻿(a) (Best Start tax credit abatement):
2: After section MF 7(2) Order in Council under subsection (1)﻿(db): requirements
2BA: An Order in Council under subsection (1)﻿(db),—
a: in the case of the first Order in Council made under subsection (1)﻿(db), must be made when the total percentage increase in the movement in the New Zealand Consumers Price Index measured from that applying on 1 July 2018 is 5% or more:
b: in the case of a subsequent Order in Council under subsection (1)﻿(db), must be made when the total percentage increase in the movement in the New Zealand Consumers Price Index measured from that applying on the date when the requirement to make the immediately preceding adjustment arose is 5% or more.
3: In section MF 7(2B) subsections (1)﻿(a)﻿(i) and (2)﻿(a), (b), and (c) subsections (1)﻿(a)﻿(i) and (db)﻿(i), (2), and (2BA)
22: New subpart MG inserted (Best Start tax credit)
After subpart MF
MG: Best Start tax credit
MG 1: Best Start tax credit entitlement
Best Start tax credit for dependent child
1: A person is entitled to a tax credit, the Best Start tax credit
a: the person qualifies under section MC 2 (Who qualifies for entitlements under family scheme?); and
b: the person is a principal caregiver for the dependent child during the entitlement period; and
c: the dependent child is aged less than 3 years old; and
d: the dependent child is born—
i: on or after 1 July 2018; or
ii: before 1 July 2018, but the expected due date for the child is on or after 1 July 2018. Best Start tax credit formula
2: The formula is— Best Start tax credit − credit abatement. Definition of items in formula
3: In the formula,—
a: Best Start tax credit
b: credit abatement Extra instalment
4: This section is overridden by section 80KW of the Tax Administration Act 1994. Best Start credit abatement, Best Start tax credit, dependent child, entitlement period, principal caregiver
MG 2: Best Start tax credit
Best Start tax credit for dependent child
1: For the purposes of section MG 1(3)﻿(a), the person’s Best Start tax credit for the entitlement period for the dependent child is calculated using the formula— prescribed amount × days ÷ 365. Definition of items in formula
2: In the formula,—
a: prescribed amount
b: days If dependent child dies during entitlement period
3: The person continues to be entitled to the Best Start tax credit for 4 weeks after the dependent child dies, if the person otherwise meets the requirements of section MG 1(1). Order in Council increasing amount
4: The amount in subsection (2)﻿(a) may be changed as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council). When another person cares for dependent child
5: A Best Start tax credit must be reduced in proportion to the time in the entitlement period that the dependent child spends in the exclusive care of another person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?). amount, Best Start tax credit, dependent child, entitlement period
MG 3: Best Start credit abatement
When this section applies
1: For the purposes of section MG 1(3)﻿(b) the person’s Best Start credit abatement for the entitlement period is calculated using the formula— full-year abatement × days ÷ 365. Definition of items in formula
2: In the formula,—
a: full-year abatement
i: if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $79,000, 21 cents for each complete dollar of the excess; or
ii: if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $79,000, 21 cents for each complete dollar of the excess:
b: days
i: the days on which the dependent child is less than 1 year old:
ii: the days of any calendar months in which the person receives protected Best Start tax credit as described in section MG 4. Order in Council increasing amount
3: The amounts in subsection (2)﻿(a) may be changed as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council). amount, Best Start credit abatement, Best Start tax credit, civil union partner, de facto partner, dependent child, entitlement period, family scheme income, income-tested benefit, protected Best Start tax credit, relationship period, spouse
MG 4: Person receiving protected Best Start tax credit
Requirements
1: For the purposes of section MG 3(2)﻿(b)﻿(ii), a person who receives protected Best Start tax credit for a calendar month in an entitlement period, is a person who, in the calendar month,—
a: has no spouse, civil union partner, or de facto partner, receives an income-tested benefit, and derives family scheme income that is less than the amount set out in section MG 3(2)﻿(a)﻿(i):
b: has a spouse, civil union partner, or de facto partner, receives an income-tested benefit, and derives family scheme income that together with the family scheme income of their spouse, civil union partner, or de facto partner is less than the amount set out in section MG 3(2)﻿(a)﻿(ii). Annualised equivalent
2: Section MB 2 (Adjustment for period that is less or more than 1 year) applies to adjust the amount of family scheme income to provide an annualised equivalent. amount, Best Start tax credit, civil union partner, de facto partner, entitlement period, family scheme income, income-tested benefit, protected Best Start tax credit, spouse
23: Section YA 1 amended (Definitions)
1: This section amends section YA 1
2: In the definition of abating WFF tax credit subparts MA to MF subparts MA to MG
3: Insert, in appropriate alphabetical order: Best Start credit abatement
4: Insert, in appropriate alphabetical order: Best Start tax credit
5: In the definition of chief executive subparts MA to MF subparts MA to MG
6: In the definition of child subparts MA to MF subparts MA to MG
7: In the definition of child tax credit subparts MA to MF subparts MA to MG
8: In the definition of civil union partner subparts MA to MF subparts MA to MG
9: In the definition of dependent child
a: in paragraph (b), replace the words before the subparagraphs with: for the purposes of the child tax credit and WFF tax credits other than the Best Start tax credit, does not include a child in relation to whom—
b: in paragraph (c), replace the words before the subparagraphs with: despite paragraph (b)﻿(i), for the purposes of the child tax credit and WFF tax credits other than the Best Start tax credit, includes a child or a young person, as defined in section 2(1) of the Oranga Tamariki Act 1989,—
c: in paragraph (c)﻿(iii), replace person person:
d: for the purposes of the Best Start tax credit, includes a child for whom a person receives—
i: payments under section 363 of the Oranga Tamariki Act 1989:
ii: a benefit paid under section 28 or 29 of the Social Security Act 1964
10: In the definition of entitlement period subparts MA to MF subparts MA to MG
11: In the definition of family credit abatement subparts MA to MF subparts MA to MG
12: Replace the definition of family scheme family scheme
13: In the definition of family scheme income subparts MA to MF subparts MA to MG
14: In the definition of family tax credit subparts MA to MF subparts MA to MG
15: In the definition of full-time earner subparts MA to MF subparts MA to MG
16: In the definition of in-work tax credit subparts MA to MF subparts MA to MG
17: In the definition of minimum family tax credit subparts MA to MF subparts MA to MG
18: In the definition of net family scheme income subparts MA to MF subparts MA to MG
19: In the definition of New Zealand resident subparts MA to MF subparts MA to MG
20: In the definition of parental tax credit subparts MA to MF subparts MA to MG
21: Insert, in appropriate alphabetical order: protected Best Start tax credit
22: In the definition of relationship period subparts MA to MF subparts MA to MG
23: In the definition of separated person subparts MA to MF subparts MA to MG
24: In the definition of social assistance payment subparts MA to MF subparts MA to MG
25: In the definition of spouse subparts MA to MF subparts MA to MG Amendments to Tax Administration Act 1994
24: Tax Administration Act 1994 amended
Sections 25 to 40 Tax Administration Act 1994 2018-07-01 Tax Administration Act 1994 re section 2(2)
25: Section 3 amended (Interpretation)
In section 3(1)
a: in the definition of family notice of entitlement in subparts MA to MF and MZ of the Income Tax Act 2007
b: insert, in appropriate alphabetical order,— family scheme
26: Section 24F amended (Special tax codes)
In section 24F(5) subparts MA to MF and MZ of the Income Tax Act 2007 the family scheme
27: Section 41 amended (Annual returns by persons who receive family assistance credit)
1: In the heading to section 41 family assistance credit credit under family scheme
2: In section 41(1) subparts MA to MF and MZ of the Income Tax Act 2007 the family scheme
3: In section 41(3)﻿(a) subparts MA to MF and MZ of the Income Tax Act 2007 the family scheme
4: In section 41(3)﻿(b) family assistance credit or a minimum family tax credit a tax credit under the family scheme
5: In section 41(6) subparts MA to MF and MZ of the Income Tax Act 2007 the family scheme
28: Section 80KB amended (Contents of application)
1: In section 80KB(1)﻿(c) unless the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year, give for each person who signed the application (the signatory) a complete statement of—
2: Replace section 80KB(1)﻿(f)
f: be accompanied by the information described in subsection (2), unless the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year; and
g: be accompanied by the information described in subsection (2)﻿(c) and (d), if the only tax credit the person expects to be entitled to for the relevant tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year.
3: In section 80KB(2) The information for the purposes of subsection (1)﻿(f) and (g) is—
29: Section 80KC amended (When tax file number of child does not accompany application)
In section 80KC(2)﻿(b) section MA 1 or, as applicable, sections MB 1 and ME 1 of the Income Tax Act 2007 the family scheme
30: Section 80KD amended (What Commissioner must do on receipt of application)
In section 80KD(2)﻿(a) sections MD 1, or sections MD 1 and ME 1 of the Income Tax Act 2007, as applicable the family scheme
31: Section 80KK amended (Payment by instalment of family tax credit (without abatement))
1: In the heading to section 80KK family tax credit family tax credit and Best Start tax credit
2: In section 80KK(1) family tax credit —
a: the family tax credit:
b: the Best Start tax credit.
3: In section 80KK(2) the family tax credit by instalment and without abatement. the following tax credits by instalment and without abatement:
a: the family tax credit:
b: the Best Start tax credit.
4: In section 80KK(4) the family tax credit for part of the 56-day period referred to in subsection (3)﻿(b)﻿(ii). the following tax credits for part of the 56-day period referred to in subsection (3)﻿(b)﻿(ii):
a: the family tax credit:
b: the Best Start tax credit.
5: In section 80KK(5) the family tax credit the family tax credit or the Best Start tax credit, as applicable
32: Section 80KN amended (Payment of tax credit by chief executive)
1: In section 80KN(1)﻿(b)﻿(i) family credit abatement is family credit abatement or the Best Start credit abatement, as applicable, is
2: In section 80KN(1)﻿(b)﻿(ii) family credit abatement is family credit abatement or the Best Start credit abatement, as applicable, is
33: Section 80KO amended (Determining WFF tax credit)
1: In section 80KO(a) family credit abatement family credit abatement or Best Start credit abatement
2: In section 80KO(b) Act. Act; and
c: take into account the rate of Best Start tax credit and the Best Start credit abatement given by sections MG 2 and MG 3 of that Act.
34: Section 80KP amended (When entitlement to income-tested benefit ends)
1: In section 80KP(1)﻿(b) their family tax credit continued. their following tax credits continued:
i: the family tax credit:
ii: the Best Start tax credit.
2: In section 80KP(2) the family tax credit the family tax credit or the Best Start tax credit, as applicable,
35: Section 80KU amended (Payment of tax credit taken over by Commissioner)
1: In section 80KU(1)﻿(b) or minimum family tax credit minimum family tax credit, or Best Start tax credit
2: In section 80KU(1)﻿(c) the tax credit under section MD 1 of the Income Tax Act 2007 for the period described in subsection (3) the following tax credits for the period described in subsection (3):
i: the tax credit under section MD 1 of the Income Tax Act 2007:
ii: the tax credit under section MG 1 of that Act.
36: Section 80KV amended (Statement of family scheme income)
In section 80KV(1) tax year tax year, unless the only tax credit the person expects to be entitled to for the tax year is the Best Start tax credit and all dependent children will be less than 1 year old on the last day of the tax year
37: Section 80KW amended (Effect of extra instalment on entitlement to tax credit)
1: After section 80KW(4)﻿(a)﻿(ii)
iii: section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
2: After section 80KW(7)﻿(a)﻿(ii)
iii: section MG 1 of that Act, if the person is entitled to the Best Start tax credit:
38: Section 85I amended (Use of Parental Leave and Employment Protection Act 1987 and parental tax credit information to determine entitlement)
1: In the heading to section 85I and parental tax credit , Best Start tax credit, and parental tax credit
2: In section 85I(3) a parental tax credit under section MD 11 of the Income Tax Act 2007 a parental tax credit under section MD 11 of the Income Tax Act 2007 or a Best Start tax credit under section MG 1
39: Section 89C amended (Notices of proposed adjustment required to be issued by Commissioner)
In section 89C(m) identified in subparts MA to MF and MZ of the Income Tax Act 2007 under the family scheme
40: Section 185 amended (Payment out of Crown Bank Account)
In section 185(1)﻿(e) subparts MA to MF and MZ of the Income Tax Act 2007 the family scheme Amendments to other enactments
41: Schedule 2 of the Housing Restructuring and Tenancy Matters Act 1992 amended (Prescribed elements of calculation mechanism)
Replace Schedule 2, clause 10(a)﻿(ii)
ii: received as a parental tax credit, child tax credit, in-work tax credit, or Best Start tax credit under subparts MA to MG 2018-07-01 Housing Restructuring and Tenancy Matters Act 1992 re section 2(2)
42: Section 3 of the Social Security Act 1964 amended (Interpretation)
In section 3(1) income subparts MA to MF and MZ of the Income Tax Act 2007 subparts MA to MG 2018-07-01 Social Security Act 1964 re section 2(2): this amends note is for sections 42 and 43.
43: Section 61G of the Social Security Act 1964 amended (Temporary additional support)
In section 61G(7) tax credit subparts MA to MF and MZ of the Income Tax Act 2007 subparts MA to MG
44: Clause 13 of the Privacy (Information Sharing Agreement between Inland Revenue and Ministry of Social Development) Order 2017 amended (Procedure before adverse action taken)
1: In clause 13(3)﻿(a)﻿(ii) subparts MA to MF and MZ of the Income Tax Act 2007 subparts MA to MG and MZ of the Income Tax Act 2007
2: In clause 13(3)﻿(b)﻿(i) subparts MA to MF and MZ of the Income Tax Act 2007 subparts MA to MG and MZ of the Income Tax Act 2007 2018-07-01 Privacy (Information Sharing Agreement between Inland Revenue and Ministry of Social Development) Order 2017 re section 2(2)
45: Clause 1 of the Taxation (Abated Interim Payments of subparts MA to MF and MZ Credit) Regulations 2002 amended (Title)
In clause 1 subparts MA to MF and MZ subparts MA to MG and MZ 2018-07-01 Taxation (Abated Interim Payments of subparts MA to MF and MZ Credit) Regulations 2002 re section 2(2)
2: Working for families
Taxation (Budget Measures: Family Incomes Package) Act 2017 repealed
46: Taxation (Budget Measures: Family Incomes Package) Act 2017 repealed
Repeal the Taxation (Budget Measures: Family Incomes Package) Act 2017 2017-12-20 Taxation (Budget Measures: Family Incomes Package) Act 2017 re section 2(1), (3) Income Tax Act 2007 amended
47: Income Tax Act 2007 amended
Sections 48 to 57 Income Tax Act 2007 2018-04-01 Income Tax Act 2007 re section 2(4): only sections 48, 50, 52, 55, 56
48: Section MD 3 amended (Calculation of family tax credit)
Section 48 repealed 18 March 2019 section 358 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
49: Section MD 3 amended (Calculation of family tax credit)
Section 49 repealed 18 March 2019 section 358 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
50: Section MD 13 amended (Calculation of family credit abatement)
Section 50 repealed 18 March 2019 section 358 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
51: Section MD 13 amended (Calculation of family credit abatement)
Section 51 repealed 18 March 2019 section 358 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019
52: Section ME 1 amended (Minimum family tax credit)
1: In section ME 1(3)﻿(a) $23,816 $26,156
2: This section applies for the 2018–19 and later tax years.
53: Section MF 4D repealed (Calculation of instalments: 1 April 2010 to 30 September 2010)
Section MF 4D 2017-12-20 Income Tax Act 2007 re section 2(1): sections 53 and 54
54: Section MF 4E repealed (Calculation of instalments: 1 October 2010 to 31 March 2011)
Section MF 4E
55: New sections MF 4F and MF 4G inserted
Before section MF 5
MF 4F: Calculation of instalments: 1 April 2018 to 30 June 2018
When this section applies
1: This section applies for calculating the amount of an instalment by way of tax credit for the abating WFF tax credit for the period starting on 1 April 2018 and finishing on 30 June 2018. Family tax credit formula: section MD 3
2: The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit, the formula— prescribed amount × days ÷ 365. Definition of items in formula
3: The items in the formula in subsection (2) are defined in subsections (4) and (5). Prescribed amount
4: Prescribed amount
a: for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:
i: $4,822, if the child is younger than 16:
ii: $5,303, if the child is 16 or older:
iii: a weighted average of the amounts in subparagraphs (i) and (ii)
b: for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:
i: $3,351, if the child is younger than 13:
ii: $3,822, if the child is 13, 14, or 15:
iii: $4,745, if the child is 16 or older:
iv: a weighted average of the amounts in subparagraphs (i) and (ii)
v: a weighted average of the amounts in subparagraphs (ii) and (iii) Days
5: Days When another person cares for dependent child
6: A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?). Family credit abatement formula: section MD 13
7: The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement, the formula— full-year abatement × days ÷ 365. Definition of items in formula
8: In the formula in subsection (7),—
a: full-year abatement
i: if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $36,350, 22.5 cents for each complete dollar of the excess; or
ii: if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $36,350, 22.5 cents for each complete dollar of the excess:
b: days When 70-day period includes 31 March
9: If a person who qualifies under section MC 2 receives instalments of the parental tax credit in a 70-day period that includes 31 March, the formula in subsection (7) is applied so that—
a: instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and
b: instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year. Relationship with subject matter
10: Sections MD 14 to MD 16 (which relate to family credit abatement), with necessary modifications, apply to the calculation of the family credit abatement in subsection (7). amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, full-time earner, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax credit, tax year
MF 4G: Calculation of instalments: 1 July 2018 to 31 March 2019
When this section applies
1: This section applies for calculating the amount of an instalment by way of tax credit for the abating WFF tax credit for the period starting on 1 July 2018 and finishing on 31 March 2019. Family tax credit formula: section MD 3
2: The instalments for the relevant tax credit are calculated using, for the calculation of the family tax credit, the formula— prescribed amount × days ÷ 365. Definition of items in formula
3: The items in the formula in subsection (2) are defined in subsections (4) and (5). Prescribed amount
4: Prescribed amount
a: for the eldest dependent child for whom the person is a principal caregiver during the entitlement period, 1 of the following, as applicable:
i: $5,878, if the child is younger than 16:
ii: $5,878, if the child is 16 or older:
b: for each dependent child for whom the person is a principal caregiver during the entitlement period, other than the eldest dependent child, 1 of the following, as applicable:
i: $4,745, if the child is younger than 13:
ii: $4,745, if the child is 13, 14, or 15:
iii: $4,745, if the child is 16 or older. Days
5: Days When another person cares for dependent child
6: A family tax credit must be reduced in proportion to the time in the entitlement period that a dependent child spends in the exclusive care of another person who qualifies under section MC 2 (Who qualifies for entitlements under family scheme?). Family credit abatement formula: section MD 13
7: The instalments for the relevant tax credit are calculated using, for the calculation of the family credit abatement, the formula— full-year abatement × days ÷ 365. Definition of items in formula
8: In the formula in subsection (7),—
a: full-year abatement
i: if the person has no spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income for the relationship period containing the entitlement period is more than $42,700, 25 cents for each complete dollar of the excess; or
ii: if the person has a spouse, civil union partner, or de facto partner during the entitlement period, and the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for the relationship period containing the entitlement period is more than $42,700, 25 cents for each complete dollar of the excess:
b: days When 70-day period includes 31 March
9: If a person who qualifies under section MC 2 receives instalments of the parental tax credit in a 70-day period that includes 31 March, the formula in subsection (7) is applied so that—
a: instalments of the parental tax credit received in the first tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year; and
b: instalments of the parental tax credit received in the second tax year are abated against the person’s family scheme income, the family scheme income of their spouse, civil union partner, or de facto partner, or the sum of those incomes for that tax year. Relationship with subject matter
10: Sections MD 14 to MD 16 (which relate to family credit abatement), with necessary modifications, apply to the calculation of the family credit abatement in subsection (7). amount, child, civil union partner, de facto partner, dependent child, entitlement period, family credit abatement, family scheme income, family tax credit, full-time earner, parental tax credit, principal caregiver, protected family tax credit, relationship period, spouse, tax credit, tax year
56: Section MF 7 amended (Orders in Council)
1: Replace section MF 7(1)﻿(a)﻿(i)
i: correspond to the movement in the New Zealand Consumers Price Index that has not yet been taken into account by an increase:
2: Replace section MF 7(2)﻿(a) and (b)
a: in the case of the first Order in Council made under subsection (1)﻿(a), must be made when the total percentage increase in the movement in the New Zealand Consumers Price Index measured from that applying on 1 October 2008 is 5% or more:
b: in the case of the second Order in Council under subsection (1)﻿(a), must be made when the total percentage increase in the movement in the New Zealand Consumers Price Index measured from that applying on 1 July 2018 is 5% or more:
c: in the case of a subsequent Order in Council under subsection (1)﻿(a), must be made when the total percentage increase in the movement in the New Zealand Consumers Price Index measured from that applying on the date when the requirement to make the immediately preceding adjustment arose is 5% or more.
3: Replace section MF 7(2B) How movement in CPI determined
2B: For the purposes of subsections (1)﻿(a)﻿(i) and (2)﻿(a), (b), and (c), a movement in the New Zealand Consumers Price Index over a period is determined by comparing the following numbers:
a: the number that, when the period started, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products:
b: the number that, when the period ended, was the most recent quarterly index number of the New Zealand Consumers Price Index all groups excluding cigarettes and other tobacco products.
4: This section applies for the 2018–19 and later tax years.
57: Section MF 7 amended (Orders in Council)
Section 57 repealed 18 March 2019 section 358 Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 Amendments to Taxation (Annual Rates and Budget Measures) Act 2011
58: Taxation (Annual Rates and Budget Measures) Act 2011 amended
Repeal sections 2(3), (4), and (5) 5(2), (3), and (4) 14B 2018-04-01 Taxation (Annual Rates and Budget Measures) Act 2011 re section 2(4)
2: Benefits
1: Winter energy payment
59: Social Security Act 1964 amended
Sections 60 to 67 Social Security Act 1964 2018-07-01 Social Security Act 1964 re section 2(6)
60: Section 3 amended (Interpretation)
1: In section 3(1) benefit
iiia: a winter energy payment:
2: In section 3(1) dependent child
f: for the purposes of clause 1(a) and (b) of Schedule 18A clause 2 of Schedule 18A
3: In section 3(1) winter energy payment Part 1KA
61: New Part 1KA inserted
After Part 1K
1KA: Winter energy payment
61FE: Winter energy payment: purpose
The purpose of the winter energy payment is to provide targeted financial assistance to help certain people meet their household heating costs during the winter period.
61FF: Winter energy payment: interpretation
In this Part and Schedule 18A qualifying benefit
a: a main benefit under this Act; or
b: New Zealand superannuation; or
c: veteran’s pension relevant payment date winter period
61FG: Winter energy payment: eligibility requirements
1: A person is entitled to a winter energy payment for 1 or more days during the winter period if, for those days,—
a: the person is receiving a qualifying benefit (or a portion of it), either as the person granted that benefit or as the spouse or partner of that person; and
b: the qualifying benefit (or a portion of it) is payable to the person; and
c: the person is not disqualified under subsection (2).
2: However, the person is not entitled to a winter energy payment for 1 or more days during the winter period if, for those days,—
a: the qualifying benefit is payable at a rate prescribed in respect of a person who is married or in a civil union or in a de facto relationship, and the chief executive has determined under subsection (3) that the person’s spouse or partner is entitled to a winter energy payment; or
b: the rate of the person’s qualifying benefit is required by section 75(3) to be reduced to the rate payable to long-term hospital patients, and the payment has been reviewed under section 81(1) and terminated under section 81(5); or
c: the person is receiving long-term residential care in a hospital or rest home, and that care is funded, in whole or in part, under the New Zealand Public Health and Disability Act 2000; or
d: the person is receiving residential care services, and those services are funded, in whole or in part, under the New Zealand Public Health and Disability Act 2000; or
e: the person has made, and not revoked, an election not to receive the payment ( see section 61FH
3: If the qualifying benefit is payable at a rate prescribed in respect of a person who is married or in a civil union or in a de facto relationship, the chief executive must determine which 1 of the spouses or partners is (as only 1 of them can be) entitled to a winter energy payment.
61FH: Winter energy payment: election not to receive
1: A person entitled to a winter energy payment may make an election not to receive the payment.
2: If the payment would be payable at a rate prescribed in respect of a person who is married or in a civil union or in a de facto relationship, the chief executive must be satisfied that the election has been made by both spouses or partners.
3: The election must be made, and may be revoked, in a form and manner approved by the chief executive.
4: Unless it is revoked, the election stops the person from being entitled to the payment for any days after the election is made.
61FI: Winter energy payment: instalments, rates, and payment
1: A winter energy payment is payable,—
a: if the person’s qualifying benefit is a main benefit under this Act, in 22 weekly instalments; or
b: if the person’s qualifying benefit is New Zealand superannuation or a veteran’s pension, in 11 fortnightly instalments.
2: The amount of an instalment is ascertained by dividing the appropriate rate per winter period set out in Schedule 18A
a: for recipients of a main benefit under this Act, by 22; or
b: for recipients of New Zealand superannuation or a veteran’s pension, by 11.
3: However, the amount ascertained under subsection (2) must be rounded up to the nearest whole cent, and then reduced to reflect any 1 or more days of the week or fortnight covered by the instalment that are days for which—
a: the person is not entitled to the payment; or
b: the payment is not payable (for example, under section 61FJ
4: An instalment must be paid on the relevant payment date.
5: The winter energy payment must not be paid in advance.
6: This section overrides sections 11D, 80, and 82(1), (2), and (6).
61FJ: Winter energy payment: effect of absence of beneficiary from New Zealand
1: The winter energy payment is not payable for 1 or more days while a beneficiary is absent from New Zealand unless it is so payable under subsection (2).
2: The winter energy payment is payable to a beneficiary for 1 or more days during any 1 or more absences of the beneficiary from New Zealand so long as each such absence is equal to or shorter than 4 weeks during the winter period and—
a: the payment would, but for those 1 or more absences, be payable to the beneficiary; and
b: the chief executive is satisfied that the 1 or more absences do not affect the beneficiary’s eligibility for the payment under section 61FG
3: Section 77 does not apply to the winter energy payment.
62: Section 61H amended (Rates of benefits, etc, may be increased by Order in Council)
In section 61H(1)﻿(d) 18, 18A
63: Section 72 amended (Limitation where applicant receiving another benefit or pension)
In section 72(a) 61EA, 61FG
64: Section 81 amended (Review of benefits)
After section 81(4)
5: The chief executive may terminate a winter energy payment if satisfied, after reviewing the payment under subsection (1), that—
a: the rate of the beneficiary’s qualifying benefit (under section 61FG(1)﻿(a)
b: continuing the payment is not consistent with the purpose stated in section 61FE
65: Section 82 amended (Payment of benefits)
In section 82(2A) and jobseeker support jobseeker support, and a winter energy payment
66: New Schedule 18A inserted
After Schedule 18 Schedule 1
67: New Part 7 of Schedule 32 inserted
In Schedule 32 Part 1
68: Consequential amendments
Amend the Acts listed in Schedule 3 2018-07-01 Legal Services Act 2011 Summary Proceedings Act 1957 re section 2(6)
2: Rates of orphan’s benefit and unsupported child’s benefit
69: Social Security Act 1964 amended
Section 70 Social Security Act 1964 2018-07-01 Social Security Act 1964 re section 2(7)
70: Schedule 4 amended
1: This section amends the rates in Schedule 4
2: Those rates are on that date replaced with new rates calculated by adding to each of those rates $20.31.
3: This section does not limit or affect increases or adjustments (for example, under section 61H 61HA
3: Accommodation supplement areas (fixing as on 26 June 2017)
71: Social Security Act 1964 amended
Sections 72 to 74 Social Security Act 1964 2017-12-21 Social Security Act 1964 re section 2(8)
72: Section 61I amended (Areas for accommodation supplement purposes may be altered by Order in Council)
1: In section 61I(1)﻿(a) are from time to time were on 26 June 2017
2: In section 61I(1)﻿(c) Area 2; or Area 2.
3: Repeal section 61I(1)﻿(d)
73: Schedule 18 amended
In Schedule 18, Part 1, clause 1 Area 1 Area 2 Area 3 as from time to time as on 26 June 2017
74: New Part 6 of Schedule 32 inserted
In Schedule 32, after Part 5 Part 2
4: Accommodation supplement areas (regulations)
75: Social Security Act 1964 amended
Sections 76 to 78 Social Security Act 1964 2018-04-01 Social Security Act 1964 re section 2(9)
76: Section 3 amended (Interpretation)
In section 3(1) Area 1, Area 2, Area 3, and Area 4
a: are defined in regulations made under section 61I
b: until the commencement of the first regulations made under that section, refer to the terms defined in clause 1 of Part 1 of Schedule 18
77: Section 61I replaced (Areas for accommodation supplement purposes may be altered by Order in Council)
Replace section 61I
61I: Regulations defining accommodation supplement areas
1: The Governor-General may, by Order in Council, make regulations that, for the purposes of Part 1K and Schedule 18, define Area 1, Area 2, Area 3, and Area 4 ( see
2: Section 61H(2) and (5) applies, with any necessary modifications, to any Order in Council made under subsection (1) as if that order had been made under section 61H(1).
78: Schedule 18 amended
In Schedule 18, Part 1, clause 1 Area 1 Area 2 Area 3 Area 4 section 61I