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LI 2015/294

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)