Family Tax Credit Increase

(PR.co.nz) 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.

Media Release 16 November 2010 from Peter Dunne, Minister of Revenue.