The 2012 Budget has been labelled a 'nickel and dime' one with Finance Minister Bill English targeting a number of tax credits that affect low income earners and children.
The childcare and housekeeper tax credit is being scrapped, as is the one for children who have a job.
Three tax credits will be removed. They are: the income-under-$9880 tax credit, the childcare and housekeeper tax credit and the tax credit for children in part-time work, which will be replaced by a limited exemption.
These changes are estimated to save $117 million over the next four years.
Mr English says changes announced on Thursday will mean the Government is on track to have its books back in surplus by 2014/15.