We will continue to make child support and Working for Families payments as normal throughout the Alert 4 period.
Working for Families Tax Credits
Working for Families Tax Credits entitlements are based on your yearly family income. If your family income changes, your entitlement may change as well. If your yearly family income has decreased, you may be entitled to increased payments or an increased frequency of your payments.
In-work tax credits
The Government has recently passed legislation to remove the hours test eligibility requirement for the in-work tax credit (IWTC) from 1 July 2020. This makes the IWTC available to all families who are not receiving a main benefit and who have some level of employment income each week.
In-work tax credits and COVID-19
If you have had your working hours reduced or have had to stop working due to COVID-19 but continue to be paid or receive the wage subsidy, you will continue to receive IWTC. You do not need to contact us or update your details in myIR.
If you have recently stopped working for other reasons or go onto a benefit, you will no longer meet the criteria for the IWTC entitlement. Please go to myIR and update your details.
If you are taking annual leave or sick leave, you can still receive IWTC.
Minimum family tax credits
The minimum family tax credit (MFTC) usually applies if your annual family income is $27,768 or less after tax. This payment tops up your family's income to at least $534 a week after tax. To get this payment you must be working for salary or wages. A single parent must be working at least 20 hours a week. In a two-parent family, one or both parents must be working at least 30 hours a week between them.
If you have had your hours reduced or have stopped working due to COVID-19 but continue to be paid for the required 20/30 hours a week or receive a wage subsidy, you will still receive the MFTC.
The wage subsidy that is given to your employer and paid to you is considered income for MFTC purposes.
If you have had your working hours reduced below the 20/30 hours per week and are paid based on the reduced hours or have stopped working due to COVID-19 and don’t receive an income, you will not qualify for the MFTC entitlement.
If you are taking annual leave or sick leave, you will receive MFTC.
If you're having trouble making child support payments by due date, you should contact us. It may be appropriate to re-estimate your income and reduce the assessment.
Paid parental leave
If you're taking time off work to care for your baby, or a child who has come into your care, you may be eligible for paid parental leave.