Announcements
PUBLISHED 16 November 2010

Minimum family tax credit rate to rise

The annual amount of the minimum family tax credit that guarantees a family’s after-tax income will rise from $21,008 to $22,204 from 1 April 2011. The new rate was set by Order in Council yesterday.  For more information, see the media statement.


Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

 Dunne: Minimum family tax credit rate to rise 

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.

Ends

Mark Stewart | Press Secretary | Office of Hon Peter Dunne
Cell +64 21 243 6985