MFTC threshold increased
The Taxation (Budget 2021 and Remedial Measures) Bill was introduced into the House on Thursday 20 May 2021. The Bill has now passed through all stages under urgency and increases the minimum family tax credit threshold from $30,576 to $31,096 from 1 July 2021. This change is a consequence of main benefit increases announced in Budget 2021, and ensures that low-income working families will be better off working and receiving the MFTC, than they would be on a main benefit, on an annual basis.
The Bill also corrects a drafting error made in the Child Support Amendment Act 2021, which stated that two late payment penalty changes would apply from 1 April 2021. The Bill amends the application dates for these changes from 1 April 2021 to 1 April 2022, or a date to be set by Order in Council, as was originally intended.