ME 1 Minimum family tax credit
Tax credit

(1)

A person who qualifies under sections MC 3 to MC 6 (which relate to the qualifying criteria) is entitled to a tax credit (the minimum family tax credit) for an entitlement period equal to an amount calculated using the formula in subsection (2).

Formula

(2)

The formula is—

(prescribed amount − net family scheme income) × weekly periods ÷ 52.

Definition of items in formula

(3)

In the formula,—

(a)

prescribed amount is $27,768:

(b)

net family scheme income is the net family scheme income, calculated using the formula in section ME 3, for a relationship period containing the entitlement period, of—

(i)

the person; or

(ii)

their spouse, civil union partner, or de facto partner; or

(iii)

the person and their spouse, civil union partner, or de facto partner:

(c)

weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner.

Order in Council increasing amount

(4)

In subsection (3)(a), the amount referred to may be increased as prescribed by the Governor-General by Order in Council under section MF 7 (Orders in Council).

Relationship with section 80KW of the Tax Administration Act 1994

(5)

This section is overridden by section 80KW of the Tax Administration Act 1994.

Defined in this Act: amount, civil union partner, de facto partner, entitlement period, full-time earner, minimum family tax credit, net family scheme income, relationship period, spouse, tax credit

Compare: 2004 No 35 s KD 3(2)–(5)

Section ME 1 heading: substituted, on 1 April 2008, by section 480(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section ME 1(1): amended, on 1 April 2008, by section 480(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section ME 1(2) formula: substituted (with effect on 1 April 2008), on 21 December 2010 (applying for the 2008–09 and later income years), by section 113(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section ME 1(3)(a): amended, on 1 April 2020, by clause 3(1) (and see clause 3(2) for application) of the Income Tax (Minimum Family Tax Credit) Order 2019 (LI 2019/290).

Section ME 1(3)(b): amended, on 1 April 2008, by section 480(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section ME 1 list of defined terms family tax credit: repealed, on 1 April 2008, by section 480(4)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section ME 1 list of defined terms minimum family tax credit: inserted, on 1 April 2008, by section 480(4)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).