For a number of New Zealand families, the various family support tax credits provide a much need cash boost each year. One of these credits is the in-work tax credit which can provide $4,550 for an eligible family with one to three children where the person is eligible for all 52 weeks of the year

One of the requirements for the credit is to have income from work activity. It has been recognised that for some of these families, unpaid leave may have occurred because of the country wide lock-down which would adversely affect the entitlement to the credit.

As part of the COVID-19 response the Government has announced that amendments will be introduced to ensure that the in-work tax credit will not be lost where unpaid leave is taken for up to two weeks. Payments will however stop if a benefit is received.