Budget changes from 1 April 2018
25 May 2017.
From 1 April 2018, there will be changes to Accommodation Supplement, Working for Families tax credits and income tax, as part of the Budget changes announced by the Government.
If your payments change from 1 April 2018, we'll contact you then to let you know.
These changes will be made automatically, you won't need to do anything.
Getting Accommodation Supplement
From 1 April 2018, if you're getting Accommodation Supplement, this payment may go up.
How much you get for Accommodation Supplement is based on:
- the Area you live in
- your accommodation costs for the place you live in
- your income
- your cash assets
- your family circumstances.
The maximum amount you can get for Accommodation Supplement depends on where you live.
Why it's changing
Places in New Zealand are allocated into 4 different Accommodation Supplement Areas based on their local housing costs, with Area 1 having the highest housing costs and Area 4 having the lowest.
From 1 April 2018:
- the maximum rates for all 4 Areas will go up
- some places will move into a different Accommodation Supplement Area.
This means, if you're getting Accommodation Supplement:
- it may go up regardless of where you live
- if you live in a place that moves to a different Area, it could go up significantly.
Getting Temporary Additional Support
If you get Temporary Additional Support and your Accommodation Supplement payment goes up, in most cases your Temporary Additional Support payment will go down. This is because more of your accommodation costs will be covered by your increased Accommodation Supplement.
Getting Working for Families tax credits
Children under 16
From 1 April 2018, if you get Family Tax Credit for children under 16, the amount you get will increase to the same amount as what you can get for children aged 16-18.
First or only child
Age of children
From 1 April 2018
0-15 years $92.73 $101.98 +$9.25
Second or subsequent child
Age of children
From 1 April 2018
0-12 years $64.44 $91.25 +$26.80 13-15 years $73.50 $91.25 +$17.75
Income above $35,000 a year
Currently, if your income is above $36,500 a year, it affects how much you get for some Working for Families tax credits.
From 1 April 2018, if your income is above $35,000 a year, some of your Working for Families tax credits will reduce by 25 cents for every $1 you earn over $35,000.
Work out how much you can get
If you're getting a benefit, New Zealand Superannuation or Veteran's Pension, and don't have any other income, you'll get the full amount of Family Tax Credit (as long as your income is below $35,000 a year).
If you don't get a benefit, New Zealand Superannuation or Veteran's Pension, you can use the Family Incomes calculator on the Treasury website to work out how much you may get for Working for Families tax credits from 1 April 2018.
From 1 April 2018, personal income tax thresholds will increase.
Current income tax threshold
Income tax threshold from 1 April 2018
$0 - $14,000 $0 - $22,000 10.5% $14,001 - $48,000 $22,001 - $52,000 17.5% $48,001 - $70,000 $52,001 - $70,000 30% Over $70,000 Over $70,000 33%
Getting a benefit
If you get a benefit, eg, Jobseeker Support, Sole Parent Support or Supported Living Payment, your payment won't change because it's paid as an after tax amount.
Getting New Zealand Superannuation or Veteran's Pension
If you get New Zealand Superannuation or Veteran's Pension and it's your main source of income, your payment will go up because you won't be paying as much tax.
If you're working, and don't get a benefit, New Zealand Superannuation or Veteran's Pension, you can use the Family Incomes calculator on the Treasury website to work out how much more income you may get after tax from 1 April 2018.