Boost to minimum family tax credit rate

Eligible low-income working families will be entitled to an increased 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. It ensures that these working families 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 $18,460 a year. This will rise to $20,540 from 1 April 2009.

Around 3,000 families received the tax credit in the tax year ended March 2008,” Mr Dunne said.

The change to the minimum family tax credit, which takes into account rises in inflation and the upcoming changes in personal tax rates, was approved by Order in Council yesterday.

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