IRD plays ‘let’s confuse everybody’

The already complex Working for Families package has just been made even more confusing says economist Dr Susan St John.

Speaking at the Where to for Welfare? conference held at the University of Auckland on 21 March to discuss recent and proposed welfare reforms, Dr St John told how the government has just asked for submissions on the Income Tax Bill 2007, where the complex system of tax credits that make up Working for Families, including the Family Tax Credit, the In-Work Payment and Family Support were carefully defined. “Now IRD has changed the names of the key components, for example using the term ‘family tax credit’ to refer to ‘family support’, a completely different use of the term to that found in the Bill – it seems like yet another case of one part of IRD not talking to the other, and certainly not consulting on such a major change” she said.

But Dr St John highlighted that this was not just a bureaucratic bungle – it would have an impact of ordinary New Zealanders, many of whom are already confused about their entitlements to Working for Families. “This is just helps further to hide the fact that Working for Families is not helping some of New Zealand’s poorest families, those on benefits”. Dr St John is associated with legal case initiated by the Child Action Group that challenges the In-Work Payment, alleging that it is discriminatory on the basis of parent work status.

Old Name New Name
In-Work Payment In-Work Tax Credit
Family Support Family Tax Credit
Family Tax Credit Minimum Family Tax Credit

Proceedings of the conference can be found at
http://www.auckland.ac.nz/publicpolicygroup

ENDS

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