This paper is the second of a series making recommendations for the Government’s planned Working for Families (WFF) overhaul. WFF is the primary income support mechanism for children in New Zealand. In New Zealand’s social security system, benefits are primarily for adults, New Zealand Superannuation (NZ Super) is for the support of older citizens, while WFF is for the support of children.

This document provides a comparison of the Australian and New Zealand family tax credits. Both countries use a tax- funded payment to the caregiver to help with the costs of children, but they differ from each other in the details of the design of these family tax credits/benefits. The report highlights the significant gulf between the two countries of the treatment of families supported by a benefit and those who are not. Australia does not discriminate against families on benefits. When compared to Australia, all low-income families in New Zealand receive less, but those on benefits particularly miss out.