Family tax credit to increase
Low-income working families will be eligible for an increase in their family tax credit from 1 April next year, Revenue Minister Peter Dunne announced today.
"The family tax credit tops up the after-tax income of working families," Mr Dunne said.
"It is an extra payment to ensure that the after-tax income of those families does not fall below a certain income level. At present, the family tax credit guarantees recipients a net income of $17,680 a year. That will rise to $18,044 from 1 April 2007.
"The family tax credit is there to support families moving off a benefit and into paid work, and to ensure that people who do paid work are better off as a result of being in the workforce.
"As of August this year, the family tax credit was being paid to about 2,500 families, over 80 percent of whom were sole parent families," Mr Dunne said.
The change to the family tax credit was approved by Order in Council today.