Kerre Woodham talks about Working For Families
More families could receive a $72.50 a week tax credit, as part of a massive and fundamental change to the system, after a review of the $3 billion Working for Families tax credit system that ended last year.
A review of the scheme, which currently supports just under 350,000 families with children, is before Social Development Minister Carmel Sepuloni, and has found serious design issues in the way some of the tax credits are applied.
The review also found that one of the tax credits was so flawed that half of the families that received it were accidentally overpaid, creating a tax debt they might need to pay back, while most of the other half of families receiving the payment were underpaid during the year, and only got paid the credit as a lump sum.
It also warned that despite the tax credit system, in-work poverty was becoming an increasing issue for families.
Kerre Woodham talks about the Working For Families tax credit and refers to an article by Dr Eric Crampton written by the Initiative before the review.