Low-income families receiving the minimum family tax credit will receive an increase of 5.7% in their guaranteed minimum annual income from April 1 next year, Revenue Minister Peter Dunne said today.
The guaranteed minimum income for eligible working families will rise from NZ$21,008 to NZ$22,204 after the change was approved on Monday, Dunne said. The change was earmarked in the May 2010 Budget.
The change was made to take into account anticipated inflation rates and a GST rate which was increased from 12.5% to 15 %, Dunne said.
GST was raised on October 1 this year, six months ahead of the pending rise in the family tax credit.
Here is the announcement from Dunne:
Low-income working families who are eligible for the minimum family tax credit can look forward to an increase from 1 April next year, Revenue Minister Peter Dunne announced today.
The minimum family tax credit provides a guaranteed minimum family income to families who are in work and helps support them in moving off a benefit and into paid employment.
“It ensures that these working families are better off as a result of being in the workforce,” Mr Dunne said.
The MFTC currently guarantees recipients an after-tax income of $21,008 a year following an adjustment made in Budget 2010. This will rise to $22,204 from 1 April 2011. The new rate takes into account anticipated inflation rates and the recent rise in the GST rate.
The change to the minimum family tax credit was approved by Order in Council yesterday.
1 Comments
"We welcome your help to improve our coverage of this issue."
A suggestion, either:
1. Define the word "inflation" and also that word "deflation" that gets used constantly on this site
or
2. Use the correct and sensible defintions, and stop using "inflation" when what is meant is "price increases" or "reduction in purchasing power".
Inflation is the increase in the money supply, nothing more, nothing less.
So, what has inflation been over the past year? Which leads me to suggestion #2, how about mentioning the REAL inflation, it is published by the RBNZ.
How much has M3 increased over the past year? How much over the past decade?
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