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Inland Revenue

Tax Policy

PUBLISHED 3 May 2019

Welfare Expert Advisory Group report released

The Welfare Expert Advisory Group report was released today by Social development Minister, Carmel Sepuloni. The report contains 42 recommendations for improving the welfare system, including:

- increasing rates of benefit payment;

- increasing Family Tax Credit rates;

- replacing the In-Work Tax Credit and the Independent Earner Tax Credit with a new tax credit (referred to as an Earned Income Tax Credit);

- removing the 30 hours maximum work rule for the Jobseeker Support payment, which would mean the Minimum Family Tax Credit would no longer be required, and could be repealed;

- repealing the Child Tax Credit;

- making the Best Start Tax Credit universal for first three years of children's lives;

- aligning core eligibility definitions across welfare agencies, and also align debt prevention, fraud practices and debt collection practices across government;

- improving employment support services and active labour market policies;

- improving financial support for housing, alongside increasing the supply of housing and improving its affordability;

- indexation of payments to reflect wage movements; and

- changes to the culture of Work and Income.

For details of the announcement see the Minister’s press releaseWEAG's report with the full set of recommendations, and Cabinet papers.