This report compares the Australian and New Zealand family tax credit systems. Findings demonstrate that the Australian system is significantly more generous. This is particularly the case for families receiving income support. The New Zealand system is discriminatory, penalising the children of parents receiving a benefit.

Key recommendations:

1. In light of COVID-19 and associated job losses, it is critical that Working For Families (WFF) be redesigned so that the children of caregivers who become unemployed do not miss out on these crucial payments.
2. New Zealand must bring the family tax credit system up to speed in line with the benefit system, and in line with the tax credit systems of comparable countries such as Australia, to ensure that the value of tax credits are not eroded for low-income families.