NZ is being shown up by Australia’s family tax credit system, says CPAG
CPAG’s latest background paper, Family tax credits: Do children get the support in New Zealand that they would get in Australia?published today, finds that Australia’s family tax benefits system is significantly more generous than New Zealand’s Working for Families tax credits.
CPAG researchers Caitlin Neuwelt-Kearns and Susan St John say in contrast to Australia, the New Zealand system is both less generous and discriminatory so that the children of parents receiving a benefit do not get the full tax credits available to other low income families.
“The Australian system of family tax benefits for children is significantly better both in design and level. Families across all our modelling scenarios show that families get a much lower level of support in New Zealand,” St John says.
“As CPAG has repeatedly raised, child poverty rates are significantly higher for children raised in ‘workless households’, meaning that the design of the NZ system is leaving children in the poorest families even further behind.”
These families miss out on the In-Work Tax Credit (IWTC) when they have any core benefit, regardless of whether they have any paid work. The IWTC is an important part of the payment to the caregiver for the needs of the children and is worth at least $72.50 a week.
“CPG is disappointed that the changes brought in today (1st July) for the IWTC do not go nearly far enough and create a raft of other problems. While the minimum work hours for the IWTC were removed, parents must still be in paid work and cannot be on income support in order to be eligible,” St John says.
The latest change only helps 19,000 families, and does not match Labour’s lofty goals of significantly reducing child poverty.
“Doubtless, some families will be helped, but the requirement that there must be some hours of paid work to qualify for the IWTC may rule out others who can’t fulfil the paid work requirement and will make it complicated to administer,” St John says.
“The changes brought in today add to the confusing muddle of measures implemented since lockdown. Parents not in paid work on the wage subsidy have been counted as ‘working’ and they can receive the IWTC. On the other hand, the new COVD-19 Income Relief Payment (CIRP) has a requirement for there to be no paid work at all, so the children of these recipients cannot have the IWTC (unless their partner has work).”
CPAG believes it is imperative our welfare support system does not pick and choose who is most deserving of help.
“The creation of a deserving and an undeserving class of children in the name of a failed work incentive whose purpose is also to prevent child poverty has been a bizarre feature that other countries like Australia do not have,” St John says.
Australia is a far more wealthy country than NZ. The reason for that wealth is their reliance on mining which is condemned by the left . Planing a family should not be based on what direct support there is from government. We should be able to expect good education and health but the rest should be down to the family If you cannot afford to raise a child then hold off until you can. Life does throw up hurdles and that is when you should be able to look to the government for support and the benefit should be higher than it is but that will only be affordable when those getting it are truly in need
One of the main failings of the NZ system is its discrimination against the poorest children. We don’t find that in Australia
Wealth is not finite. Surprising I know. It can be increased at will by government which can act in numerous ways to bring about better conditions and prosperity. And it is going to need to do so, has for some time but has ground people down with its free market two-stage economy.
Imports from overseas that are cheaper than those made here – for those that can get income, and for those who can’t. wiping out the work and jobs that the working people had which can no longer continue as their boss can’t compete, has shut up shop. So workers are denied forced out by deliberate government action. From reliable, regular work; they have to take what they can get. But more, they are subject to sinking wages that end up below the living wage needed to pay for the basics and with some left for enjoyment if they are lucky.
And on top of that the government encourages immigrants to compete for jobs with them at one level, and at the other the wealthy come here with borrowed money, sometimes at low interest from their homeland, and run up prices for housing which affects the whole market. And there is so much credit around for people who can get a deposit to get started, they can borrow more to buy additional houses, thus gaining a portfolio of houses which are paid for by the tenants.
So the poor can’t find an affordable dwelling for themselves to buy or rent, and sometimes can’t find anywhere to rent; and that’s our fiscal state today, and the government is dragging their heels. They need to build decent state houses, with enclosed yards for children and dogs etc. The houses at reasonable rent and within cooee of buses, are more important than getting a whole lot more money, which definitely should creep up at 6 month intervals so it keeps being there for urgent need
Having a house will be a boon. And being able to take in a boarder would help too. And being able to see if a man or woman is a suitable partner without having the sex police after you. Are we back in the 1950’s? The politicians would like to turn the ‘burbs in Gloriavale or one of those. They think that then all that nonsense about having rising standards of living and civilisation could be abandoned completely. Ooooh the relief say all the narrow, prissy types, all clean and tidy on the outside, and filled with pools of smelly stuff in their heads.