Source: New Zealand Inland Revenue Department – Press Release/Statement:
Headline: MFTC threshold increased
<p>The <a href=”https://legislation.govt.nz/bill/government/2021/0038/8.0/whole.html”>Taxation (Budget 2021 and Remedial Measures) Bill</a> 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.</p>
<p>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.</p>
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