Income Tax (Minimum Family Tax Credit) Order 2015
2015 Order in Council increases the minimum family tax credit (MFTC) for low-income working families.
Low-income working families who are eligible for the minimum family tax credit (MFTC) will receive an increase for the 2016-17 tax year.
The tax credit currently guarantees recipients an after-tax income of $23,036 a year ($443 a week). This will increase to $23,764 a year ($457 a week) for the 2016-17 tax year, beginning on 1 April 2016.
The minimum family tax credit provides a top-up to after-tax income that gives a working family a guaranteed minimum level of income, provided a couple is employed for at least 30 hours a week, or 20 hours a week for a sole parent.
The tax credit is a transitional measure, to help working families moving off a benefit into paid employment.
The increase, which takes into account rises in inflation and the Budget 2015 increases to benefit rates and the in-work tax credit, was approved by Order in Council on 23 November 2015.
The new rate comes into force on 1 April 2016.
Income Tax (Minimum Family Tax Credit) Order 2015 (LI 2015/294)