New Zealand Legislation: Acts

MF 7 Orders in Council

• What may be done by Order in Council

  (1) The Governor-General may, by Order in Council,—

  • (a) increase the amounts appearing as items in the formulas for family tax credit listed in section MD 3(3) (Calculation of family tax credit) and the amount of the threshold set out in MD 13(3) (Calculation of family credit abatement) by amounts that—

    • (i) correspond to the movement in the quarterly all groups index number of the New Zealand Consumers Price Index:

    • (ii) are rounded up to the nearest whole dollar, without affecting the calculation of later increases made under this paragraph:

  • (b) increase the amounts appearing as items in the formula for the in-work tax credit set out in section MD 10(3) (Calculation of in-work tax credit):

  • (c) increase the amount appearing as an item in the formula for the parental tax credit set out in section MD 12(3) (Calculation of parental tax credit):

  • (d) increase the amount appearing as an item in the formula for the minimum family tax credit in section ME 1(3) (minimum family tax credit):

  • (e) replace schedule 31 (Annualised equivalent amount for Part M).

  Order in Council under subsection (1)(a): requirements

  (2) An Order in Council under subsection (1)(a),—

  • (a) in the case of the first Order in Council made under subsection (1)(a), must be made when the total percentage increase in the movements in the quarterly all groups index number of the New Zealand Consumers Price Index measured from that applying on 1 October 2008 is 5% or more:

  • (b) in the case of a subsequent Order in Council under subsection (1)(a), must be made when the total percentage increase in the movements in the quarterly all groups index number of the New Zealand Consumers Price Index measured from that applying on the date when the requirement to make the immediately preceding adjustment arose is 5% or more.

  Timing of Order in Council

  (3) An Order in Council made under this section must be made no later than 1 December in each year and must apply from 1 April following that date.

  Review of in-work tax credit and parental tax credit

  (4) The Minister responsible for the Inland Revenue Department, in consultation with the Minister responsible for the department currently responsible for administering the Social Security Act 1964, must cause a review to be undertaken of the amounts of the in-work tax credit and the parental tax credit allowable under subparts MB to MF and MZ.

  Timing of review

  (5) A review undertaken under subsection (4) must occur,—

  • (a) in the case of the first review, not later than 30 June 2008; and

  • (b) in the case of subsequent reviews, not later than 30 June in the third year after each preceding review.

  Defined in this Act: amount, family tax credit, in-work tax credit, minimum family tax credit, parental tax credit

  Compare: 2004 No 35 s KD 5C

  Section MF 7(1)(a): amended, on 1 April 2008, by section 489(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7(1)(b): amended, on 1 April 2008, by section 489(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7(1)(d): amended, on 1 April 2008, by section 489(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7(2)(a): amended (with effect from 1 April 2008), on 29 May 2008, by section 35 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

  Section MF 7(4) heading: amended, on 1 April 2008, by section 489(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7(4): amended, on 1 April 2008, by section 489(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7 list of defined terms family support: repealed, on 1 April 2008, by section 489(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7 list of defined terms in-work payment: repealed, on 1 April 2008, by section 489(6)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7 list of defined terms in-work tax credit: inserted, on 1 April 2008, by section 489(6)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section MF 7 list of defined terms minimum family tax credit: inserted, on 1 April 2008, by section 489(6)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).