Family tax credit rate rises

Ajay Kumar of Global Financial Services (Right) holds the Supreme Business Award Trophy with Aseem Agarwal at the Awards Night on November 15, 2010.

Auckland November 16 Low-income working families who are eligible for the minimum family tax credit can look forward to an increase from 1 April next year, Revenue Minister Peter Dunne announced today.

Family tax credit rate rises

Auckland November 16

Low-income working families who are eligible for the minimum family tax credit can look forward to an increase from 1 April next year, Revenue Minister Peter Dunne announced today.

The minimum family tax credit provides a guaranteed minimum family income to families who are in work and helps support them in moving off a benefit and into paid employment. 

“It ensures that these working families are better off as a result of being in the workforce," Mr Dunne said.

The MFTC currently guarantees recipients an after-tax income of $21,008 a year following an adjustment made in Budget 2010.  This will rise to $22,204 from 1 April 2011.  The new rate takes into account anticipated inflation rates and the recent rise in the GST rate.

The change to the minimum family tax credit was approved by Order in Council yesterday (November 15, 2010).

Revenue Ministry Press Release