$180m End-of-year Lump Sum For FamiliesRevenue
Revenue Minister Bill English said more than 50,000 New Zealand families were likely to receive end-of-year family assistance lump sums totalling more than $180 million.
"Based on what happened last year, more than 50,000 of the low and middle-income families eligible for family assistance will wait for their end-of-year tax return before claiming the amount owed. This would see about $180 million flowing into families' pockets in a lump sum when they file their tax returns, or nearly $3,500 per family.
"People will be starting to file their tax returns now for the 98/99 tax year and this money will start flowing into regional economies over the next few months.
"Another 230,000 low and middle-income families have been receiving their family assistance through the year. More than $1 billion is paid out to families in family assistance each year. With tax reductions, extra family assistance and the impact of low mortgage rates, families are much better off now than they were in 1996.
"For example, a family earning $30,000 with two older children is now $157 a week better off. This is made up from $28 in tax reductions, $73 in extra family assistance, and $56 savings on a 20-year table mortgage of $80,000.
"A family earning $45,000 with two teenagers and one child still at primary school is now $164 a week better off. This is made up from $45 in tax reductions, $49 in extra family assistance, and $70 savings on a 20-year table mortgage of $100,000.