Tax Credits Guide — Independent Earner, Donation, and Child Tax Credits in NZ
the tax credits available in New Zealand. The guide covers the Independent Earner Tax Credit (IETC), the Donation Tax Credit at 33.33%, the Working for Families tax credits (the Family Tax Credit, the In-Work Tax Credit, the Best Start Tax Credit), and the child support adjustments.
Independent Earner and Donation Tax Credits
The Independent Earner Tax Credit (IETC) provides up to $520 per year for the taxpayers with the income between $24,000 and $66,000 (the abatement applies from $44,000 to $66,000). The IETC is available through the ME tax code for the salary earners. The Donation Tax Credit allows the taxpayers to claim the 33.33% credit on the donations to the approved charitable organisations, up to the total annual donation amount. The minimum donation claim is $5, and the credit is claimed through the annual tax return or the PTS. See our Donation Tax Credit Guide → for the full rules.
Working for Families Tax Credits
The Working for Families (WfF) package includes: the Family Tax Credit (up to $3,756 per year for the eldest child and $2,952 for the subsequent children), the In-Work Tax Credit (up to $3,756 per year for the families not receiving the main benefit), the Best Start Tax Credit (up to $3,756 per year for the children under 3), and the Minimum Family Tax Credit (the top-up to the minimum family income). The WfF entitlements are based on the family income and the number of the children. The IRD administers the WfF payments through the periodic instalments or the annual lump sum. See our Working for Families Guide → for the full rules.