The Government has announced a support package to ease the impact of increasing fuel prices - but how does it work and who is eligible?
From April 7, about 143,000 working families with children will get an extra $50 per week through a boost to the in-work tax credit.
A further 14,000 families will become newly eligible, but will receive an amount less than $50 per week as a result of payments abating with income.
Live updates: Extra $50 a week for 143k working families as fuel prices skyrocket
The Government said the move is designed to support those under significant cost of living pressure due to the conflict in the Middle East – which has driven up fuel prices and added pressure to household budgets.
What is the in-work tax credit?
The in-work tax credit is a payment to low-to-middle income families with dependent children – where at least one parent is in paid employment.
Neither parent must be receiving a main benefit from Work and Income.
Recipients can be employees receiving wages or a salary – or be self-employed.
Currently, the in-work tax credit is $97.50 per week – but can be paid out fortnightly or annually in a lump sum. Families with four or more children get an extra $15 a week for each child after the third.
Who is eligible?
Anyone who is eligible for the in-work tax credit is eligible for the boost.
The cut-off for receiving the in-work tax credit is a combined income of $89,000 for a family with one child, $112,000 for a family with two children, and $135,000 for a family with three children.
The income cut-off is based on the combined income of both parents, if there are two of them. This could be from part-time or full-time work, or based on one parent’s income if the other is not in paid employment and not receiving a benefit.
How much is the boost?
The Government’s boost to the in-work tax credit is an increase of $50 to the base rate per week – which would take the base rate to $147.50 per week.
This is aimed at supporting the families eligible who are under pressure due to the recent fuel price increases.
How can I get it, and when?
From April 1, the increase will be enacted – those entitled to the payment do not need to do anything – but will not receive their first payment until at least a week later.
Instead, those who are eligible will automatically receive the payment directly to their bank accounts starting on April 7 if they are paid weekly, and April 14 if they are paid fortnightly.
How long will it last?
The boost will apply for one year until April 1, 2027 – or until the price of 91 octane fuel drops below $3 for four consecutive weeks – whichever comes first.
How much will it cost?
Finance Minister Nicola Willis said the policy is estimated to cost a one-off $373 million to the Government, if it runs for the full year.
It would also be counted as part of the Government’s operating allowance for the 2026 Budget – and has been already factored into Treasury’s fiscal forecast.
The Government said this approach focuses support on working families with limited choices, while avoiding large, untargeted measures which could be inflationary.
SHARE ME