Critics worry that channelling fuel support through the Working for Families system could force some recipients to repay it later.
The government announced on Tuesday it will provide an extra $50 weekly to households receiving the in-work tax credit, to offset soaring fuel costs.
To qualify for the in-work tax credit, households must have at least one child, be employed (not on a main benefit), and earn below specific income thresholds. This year, those cut-offs are roughly $89,000 annually for one child, $112,000 for two children, and $135,000 for three children.
However, it was common for people to receive Working for Families payments they weren’t entitled to.
Since payments were based on household income, fluctuations—like job changes or variable business earnings—often led families to overreceive and later repay the excess.
Inland Revenue’s discussion document revealed that in 2022, just 24% of households receiving weekly or fortnightly payments—and reconciled by IRD at year-end—got the correct amount of Working for Families credits. It also noted that in June 2024, 56,800 recipients owed $273.5 million in Working for Families debt.
Baqir Hussain from Finex Certified Accountants expressed concern over the implications for the additional $50 weekly payment.
He advised updating income estimates as soon as circumstances change.
Inland Revenue confirmed it would monitor all Working for Families recipients to ensure they receive only what they’re entitled to.
“We are reliant on customers giving us updates if their family circumstances change. An assessment is done at the end of every year to square up what they estimated their income would be and what they actually received, and if they received more than they were entitled to, they would be assessed to pay it back.”