This project has compared the Working for Families package in New Zealand with the More Help for Families package in Australia. Through this comparison it was determined that New Zealand’s system of tax credits and centrality of paid work to the current system of child related benefits is detrimental in policy that attempts to alleviate child poverty. Australia’s package seeks to help families through three types of benefits, each related to the amount of income a family receives and the size of the family. This means benefits are available to those most in need and are easily understandable and accessible, reducing the possibilities of people in need of this type of support missing out.
The focus on this project has been on the provision of tax credits as this is the structure of the Working for Families package that was being analysed. Major changes are needed to these tax credits for them to better address the issue of child poverty in New Zealand, specifically the removal of the discrimination against children whose parents/caregivers are reliant on benefits with the In Work Tax Credit and an increase in the Family Tax Credit, to better provide for the section of the population most in need of government assistance. This will also involve a continuation of the targeting of payments to the lowest income families to best use the resources allocated to alleviating child poverty. The focus on tax credits necessitated absence of analysis in other areas of governmental policy and research into these and the effects on children is important for addressing the issue of child poverty in New Zealand.