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Women Urged To Apply For Redundancy Tax Credits

Fuseworks Media
Fuseworks Media
Women Urged To Apply For Redundancy Tax Credits

More women than men are joining the ranks of the unemployed and they are being urged to check for a tax credit if they have been made redundant.

"Female unemployment increased by 15,000 according to the June quarter Household Labour Force Survey," says Cilla Hegarty, Managing Director of NZ Tax Refunds.

"In comparison male unemployment increased by 8000." Total New Zealand unemployment increased by 23,000 in the June quarter to 138,000 people.

"It is important for women who have been made redundant to check whether they are eligible for a tax credit, as this is often the last thing they think of during what is often a difficult and stressful time for them and their families.

"Many of these women are probably due a tax credit now - they don't have to wait until the end of the financial year. "As soon as a person is made redundant there is a government incentive to apply for tax credits up to the value of $3,600.

"If an employee has received redundancy payments they could have been taxed at almost 40%." NZ Tax Refunds has this year processed an increasing number of tax credits for people made redundant as firms cut back on staff numbers and rationalise.

"One female client who had worked in the finance sector for many years was eligible for a redundancy tax credit of around $3500. Another who was made redundant from a government department received around $2000 in redundancy credits."

NZ Tax Refunds, New Zealand's specialist online tax refund company, provides a no-risk service for clients. Its system assesses whether an individual is eligible for a tax refund and if so the company applies on their behalf and charges a modest fee up to 19.5 per cent of the refund.

"In most cases any redundancy tax credits can be paid out to the client within 10 working days," says Cilla Hegarty.

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