Annual Report 2006: Part two - Delivering on our outcomes
Family assistance
Inland Revenue administers family assistance jointly with the Ministry of Social Development. This year Inland Revenue distributed $839 million (55.0%) of the total amount of family assistance.
We estimate 285,000 families will receive family assistance distributions for the tax year ending 31 March 2006 compared to 269,219 in 200512. The total amount distributed is expected to rise to $2.6 billion to 350,000 families in 2008.
Early findings from the joint Inland Revenue and Ministry of Social Development evaluation of the implementation of Working for Families show that overall awareness of the package is high and that the take-up is higher than was forecast.
|
2005 $ million |
2006 $ million | |
|---|---|---|
| Inland Revenue |
520 |
839 |
| Ministry of Social Development |
481 |
686 |
| Total |
1,001 |
1,525 |
Family assistance components
Family assistance is made up of five components. Family support is available to all families who meet the income criteria. It is jointly distributed by Inland Revenue and the Ministry of Social Development. We administer the other four entitlements available to families13. These are child tax credit, family tax credit, parental tax credit and in-work payment.
Impact of Working for Families
The first phase of Working for Families, which increased the levels of family assistance payments, was in effect from 1 April 2005 until 31 March 2006. 83,000 families received family assistance from Inland Revenue during March 2006 - 15,500 more families than during the same month last year.
The second phase of Working for Families came into effect on 1 April 2006. It introduced the in-work payment and increased the levels of family assistance payments. Inland Revenue distributed $256 million of the $839 million in family assistance payments made this year, in the period from 1 April 2006 to 30 June 2006. 112,000 of the 159,000 families who received family assistance in June 2006 received the in-work payment.
The third phase of Working for Families will come into effect on 1 April 2007, further increasing the levels of family assistance payments.
|
2002 $ million |
2003 $ million |
2004 $ million |
2005 $ million |
2006 $ million | |
|---|---|---|---|---|---|
| Family support |
848 |
847 |
819 |
833 |
1,280 |
| Child tax credit |
157 |
143 |
155 |
141 |
154 |
| Family tax credit 14 |
14 |
16 |
14 |
13 |
5 |
| Parental tax credit |
18 |
12 |
14 |
14 |
16 |
| In-work payment 15 |
- |
- |
- |
- |
$70 |
|
Total family assistance |
1,037 |
1,018 |
1,002 |
1,001 |
1,525 |
12. A number of customers receive their family assistance payments as a lump sum at the end of the tax year. The total number of family assistance recipients will be available once our end-of-year reconciliations are complete.
13. For those who meet the income criteria and who are not on a benefit.
14. This requires a minimum number of hours of work per week.
15. As the in-work payment is new to family assistance, customers need to confirm their eligibility. Current recipients of the child tax credit, not eligible for the in-work payment, will continue to receive the child tax credit until they are no longer eligible.
Date published: 06 Nov 2006
Back to top
