Fix Working For Families - FWFF 2.8

Working for Families is a scheme of tax credits paid to eligible families with dependent children aged 18 or younger, to help with the family's day-to-day living costs. However, the operation of the scheme fails to take account of the best interests of ALL children it is supposed to be supporting. In particular, the In-Work Tax Credit (IWTC) is available only to low-income families whose parents meet particular criteria: a minimum number of of hours in paid work (30 per two-parent household, 20 for a sole) and they are not receiving any of the main social welfare benefits.

This means children of low-income families are $72.50 per week (as at 1 April 2016) worse off than children in families who meet the work-based criteria. Considering these tax credits are designed to assist with the living costs of children, none will experience the pinch of high-living costs more than those who are ineligible for this significant payment.

Child Poverty Action Group believes it is critical that Government respond to the increasing costs of basic needs and high inequality by raising household income. The principle of equal treatment for all low-income children should be restored by adding the IWTC to the first child Family Tax Credit (FTC), and the payment adusted accordingly for larger families. All children in low-income families deserve and need this important source of income support.