The discussion document outlines a series of proposed reforms to the Working for Families (WfF) tax credit system. The central objective of the proposals is to ensure that families receive the correct level of financial support at the right time, while reducing the incidence of overpayments and associated debt.

Key proposals include shifting from an annual to a shorter assessment period, potentially quarterly, and basing entitlements on actual past income rather than estimated future income. This would reduce the need for end-of-year reconciliations and help families avoid debt. The document also explores the possibility of simplifying the definition of “family scheme income” to reduce confusion and compliance burden, particularly for families with complex financial arrangements or fluctuating earnings. 

CA ANZ’s key recommendations include: 

• Introduce a dual-assessment model: monthly assessments for PAYE income and annual (with optional quarterly updates) for non-observable income. 
• Simplify the definition of family scheme income to reduce compliance burden and improve equity. 
• Improve digital access and support for digitally excluded families through multichannel engagement. There should be meaningful and practical alternatives offered for those who struggle with the online world. 
• Support families transitioning between benefit and work with integrated case management, bridging payments, and real-time data sharing. 
• Develop a unified digital platform and enhance system interoperability between IR and MSD. However, the issues discussed here also affect other government agencies (such as the Accident Compensation Corporation (ACC)). To meet government’s objectives, future development should include these related agencies. 
• Strengthen the role of intermediaries by enabling tiered access to myIR and providing tailored training and support.