The latest background papers
This quick guide explains the In-Work Tax Credit. What it is, who gets it, how it fails in its objectives, and what we can do to fix it.
We all want to see New Zealand children develop and thrive, free from the lifelong effects of poverty. There is no quick fix - but there is one thing this government could do today to help lift thousands of New Zealand children from the deepest poverty. With a simple tweak to an outdated, discriminatory policy, they could make the In-Work Tax Credit available to the kids who need it most of all.
A briefing paper prepared for CPAG by Susan St John (February 2020)
CPAG argues reform of the In-Work Tax Credit (in the context of needed reform to the whole of Working For Families) is well overdue. The poor design of these policies has entrenched poverty for the worst-off children. This briefing shows how the In-Work Tax Credit fails both objectives of reducing child poverty and incentivising paid work. The logical and cost-effective first step to alleviate the worst child poverty is to join the In-Work Tax Credit to the first child Family Tax Credit. This will markedly boost those families with the lowest incomes.
Read the full briefing paper here.