New Zealand Acts

TAXATION (WORKING FOR FAMILIES) ACT 2004 - SECT 15

15 Rules for subpart KD credit

1 Section KD 2AA(1) is replaced by the following:

1 This section applies for the purposes of sections KD 2, KD 2AAA, and KD 2AAAB .

2 After section KD 2AA(2) , the following is inserted:

2B A person is a principal caregiver of a child for an eligible period under section KD 2AAA(1) if the person lives apart from another qualifying person for that dependent child and has the child in his or her exclusive care for periods totalling at least one-third of the tax year, whether or not those periods coincide with the eligible period.

2C When subsection (2B) applies, section KD 2AAA(1)(b) is to be read as applying to the periods during which the principal caregiver has exclusive care of the child.

2D A person who is a principal caregiver under subsection (2) or (2B) must inform the Commissioner forthwith upon the occurrence of a change in the arrangements for the care of the child which has, or will have, the effect of ending the person's status as a principal caregiver.

3 In section KD 2AA(3) , A subpart KD credit is replaced by A family support credit or a parental tax credit.

4 After section KD 2AA(3) , the following is inserted:

3A If 2 persons are eligible for a child tax credit or an in-work payment in relation to a child for an eligible period, the amount of the credit of tax to which each is entitled is not affected by the eligibility of the other person for a credit of tax.

5 Subsections (1) to (4) apply in respect of the 2006-07 and subsequent income years.