Boost to minimum family tax credit rate
Low-income working families will be eligible for a $416 increase in their minimum family tax credit from 1 April next year, Revenue Minister Peter Dunne announced today.
"The family tax credit helps support families moving off a benefit and into paid work and ensures that these families who are working are better off as a result of being in the workforce.
"The minimum family tax credit provides a guaranteed minimum family income to families who are in work. It currently guarantees recipients a net income of $18,044 a year. This will rise to $18, 460 from 1 April 2008.
Around 2,400 families received the tax credit this year," Mr Dunne said.
The change to the minimum family tax credit, which takes into account rises in inflation, was approved by Order in Council yesterday.
Contact: Rachel Baxter,Tax advisor, 04 471 9728