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NZBigC

Family Questions

Question

Thought I would start a thread since I want a question answered.

My wife and I are going to apply for childcare subsidy and we earning $10 more than the maximum gross income for Rate 2. Because we are in Rate 3 ($1.59), we will be getting almost half the amount of Rate 2($2.89) because exceed it by $10. My wife will be getting paid parental leave, so I was wondering if we could somehow lower the amount of paid parental leave she gets (by $10) so that we can get the Rate 2 subsidy. It really sucks that by earning $10 more a week, we effectively lose out on a lot more.

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As she won't be working, you'll only qualify for the subsidy for 9 hours a week, not 50. Once she guess back to work it can be for up to 50 hours, but 

So you're talking a difference of $11.70 here, minus whatever that $10 a week after tax works out to be.

The only way to reduce the parental leave payment is for her employer to declare her usual weekly income to be $10 less than it is. If that paperwork is already in the system, that's a heck of a hassle to change and is going to be scrutinised more than if it was just submitted that way.

You could potentially take an hour a week or so pay cut to the same effect, as it is your combined income that counts on the subsidy.

But again, you'll only be qualifying for 9 hours a week in any case - it is a very small amount you are 'losing' and most would say, it's not worth the hassle of trying to get up into that next tier!

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Oh only 9 hours? That ain't a lot at all really. Thanks for the very detailed reply. I think I will just leave it as it is as since it would be quite a hassle trying to change things with not a lot of gain in return.

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In the past I've had to decline pay rises due to the child subsidy. Thankfully these days with two kids and the juggles we have it all works out for us. Feel your struggle tho. 👍

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Yeah its such a fickle thing and depending on case managers it can be a make or break thing. My friend busted her ass to make one work (I forgetted all the small details) but when all was said and done she was offered $2.

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