Does the redundancy tax credit still apply?
On March 28 the Government annouced a number of tax changes following the Christchurch earthquakes.
In particular the redundancy tax credit, due to end on 31 March, was further extended to 30 September 2011. Initially introduced in response to job losses during the recession, it allows workers who receive a redundancy payment to claim six cents in the dollar back from the tax they will have paid on it.
Also, certain payments as a result of the earthquake have been exempted as counting as income for the purpose of calculating Working for Families tax credits.
For further details see www.ird.govt.nz.