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  1. Post
    #1

    Rant - IRD's system has a bug

    So my partner and I moved in together on the 1st of October. She quit her job the week before, her only income she has now is her child support.

    So, for the purposes of calculating our WFF entitlement from the 1st, the income to be considered is my income + her child support, and on that figure, we'd qualify for about $200pw.

    Except... there's a bug in IRD's shiny new billion dollar system that means that they can't separate the income she earned before we moved in together, so they can no longer pay us the WFF we're entitled to as their system is taking into account all of her previous income, but hey, they've flagged as an affected account.

    And I'm assured that when they fix the bug, they'll be able to resume payments. Not that they can give me a timeframe on the bug fix. Sweet as, it's not like WFF was a core part of my budgeting or anything.

    Jesus H Christ, IRD.

    So, do I now approach Stuff and pose for a photo with my arms crossed?

    I'm sure it'll come out in the end of tax year wash, but mother ****er, I don't need that money next March, I need it now.

  2. Post
    #2
    Are you sure they're basing it on her "current" (as in this financial year) income - i.e. on the basis that she earned $x between April 1 and October 1st (5 months)? If so, it might be an unfortunate consequence in how the tax system works and how benefits are paid - in much the same way she has potentially overpaid tax, but can't claim it back until the end of the financial year

    But I'd have thought you'd be able to ask for a reassessment/consideration

  3. Post
    #3
    KevinL wrote:
    Are you sure they're basing it on her "current" (as in this financial year) income - i.e. on the basis that she earned $x between April 1 and October 1st (5 months)? If so, it might be an unfortunate consequence in how the tax system works and how benefits are paid - in much the same way she has potentially overpaid tax, but can't claim it back until the end of the financial year

    But I'd have thought you'd be able to ask for a reassessment/consideration
    Yeah, I'm sure. For the purposes of WFF, our income should only be calculated from the start of cohabitation, but their system is calculating it as if we've been living together since the start of the tax year.

    I think I'll ring them again on Monday and try to find someone who can override the computer.

  4. Post
    #4
    Edward Diego wrote:
    Yeah, I'm sure. For the purposes of WFF, our income should only be calculated from the start of cohabitation, but their system is calculating it as if we've been living together since the start of the tax year.

    I think I'll ring them again on Monday and try to find someone who can override the computer.
    Yeah nah, I honestly think it's more about how the tax system works in that they generally try to overtax you and/or underestimate benefits as to avoid you having a tax liability at the end of the year (Brand may be able to comment on this)

    http://www.legislation.govt.nz/act/p...LM1518457.html implies that her family scheme income (i.e. the income on which she is assessed as eligible for WFF) is adjusted as if she had earned that amount for the full year.

    e.g. if her family scheme income was 30,000 in the 150 days between April and October, the adjustment would be:
    $30,000 * 365 / 150 = $73,000

    Yes, it is assessed as of Oct 1st, but according to that her family scheme income is $73,000. At EOFY assuming she does not have any other income it would be adjusted down to $30,000.

  5. Post
    #5
    Edward Diego wrote:
    Yeah, I'm sure. For the purposes of WFF, our income should only be calculated from the start of cohabitation, but their system is calculating it as if we've been living together since the start of the tax year.

    I think I'll ring them again on Monday and try to find someone who can override the computer.
    Take it the media I reckon.

    You're getting financially shafted.

  6. Post
    #6
    Id goto the local MP before the media. Exhaust all options before going to the idiots.

  7. Post
    #7
    Edward Diego wrote:
    So my partner and I moved in together on the 1st of October. She quit her job the week before, her only income she has now is her child support.

    So, for the purposes of calculating our WFF entitlement from the 1st, the income to be considered is my income + her child support, and on that figure, we'd qualify for about $200pw.

    Except... there's a bug in IRD's shiny new billion dollar system that means that they can't separate the income she earned before we moved in together, so they can no longer pay us the WFF we're entitled to as their system is taking into account all of her previous income, but hey, they've flagged as an affected account.

    And I'm assured that when they fix the bug, they'll be able to resume payments. Not that they can give me a timeframe on the bug fix. Sweet as, it's not like WFF was a core part of my budgeting or anything.

    Jesus H Christ, IRD.

    So, do I now approach Stuff and pose for a photo with my arms crossed?

    I'm sure it'll come out in the end of tax year wash, but mother ****er, I don't need that money next March, I need it now.
    WFF is calculated on a yearly basis. So if you earn over the threshold for that tax year you won't qualify even if your situation changes.

  8. Post
    #8
    Rang them back today, they confirmed that they only evaluate our income jointly from the date of beginning the relationship - for the purposes of WFF, the income my partner earned prior in this tax year is not included.

    They've forwarded us to their transactions team to manually override it, which has a max 15 working day time frame.

    So no need to contact Matt Doocey or Stuff just yet.

  9. Post
    #9
    Edward Diego wrote:
    Rang them back today, they confirmed that they only evaluate our income jointly from the date of beginning the relationship - for the purposes of WFF, the income my partner earned prior in this tax year is not included.

    They've forwarded us to their transactions team to manually override it, which has a max 15 working day time frame.

    So no need to contact Matt Doocey or Stuff just yet.
    Yeah I'd double check that, it doesn't seem consistent with the legislation and would seem very easy to game e.g. say you are self-employed in a business, just pay yourself the full year's worth of salary before you move in with the gf then claim all the benefits?

  10. Post
    #10
    Their transaction team has overridden it, all sorted.

    Kevin, not sure what to tell you, it certainly could be exploitable. But the even easier exploit would've been to just not tell them I'd moved in with my partner, yeah? Especially if you're both receiving WFF, then just keep it on the low down, IRD doesn't have a WFF fraud unit like WINZ has a benefit fraud unit.

  11. Post
    #11
    Edward Diego wrote:
    But the even easier exploit would've been to just not tell them I'd moved in with my partner, yeah?
    Unless you're a leader of a political party...

  12. Post
    #12
    The new IRD system lets you estimate whatever figure you want to calculate the WfFTC entitlement.
    You can do it all your self via myIR.
    The IRD will suggest a figure for you based on your income filed for the previous year but you can override it.
    I've had no problems estimating earnings if it helps .. it just takes a few days to action.