The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.

Note 4 at the end of this version provides a list of the amendments included in it.

This order is administered by the Inland Revenue Department.

This order is made under section MF 7(1), (2) and (2BA) of the Income Tax Act 2007 on the advice and with the consent of the Executive Council.

1	Title
2	Commencement
3	Principal Act
4	Section MD 3 amended (Calculation of family tax credit)
5	Section ME 1 amended (Minimum family tax credit)
6	Section MG 2 amended (Best Start tax credit)
7	Revocation
	Explanatory note
	Gazette Information
	Notes

Order

1 Title

This order is the Income Tax (Tax Credit) Order 2022.

2 Commencement

This order comes into force on 1 April 2023.

3 Principal Act

This order amends the Income Tax Act 2007.

4 Section MD 3 amended (Calculation of family tax credit)

(1)

In section MD 3(4)(a), replace “$6,642” with “$7,121”.

(2)

In section MD 3(4)(b), replace “$5,412” with “$5,802”.

(3)

Subclauses (1) and (2) apply for the 2023–24 tax year and later tax years.

5 Section ME 1 amended (Minimum family tax credit)

(1)

In section ME 1(3)(a), replace “$32,864” with “$34,216”.

(2)

Subclause (1) applies for the 2023–24 tax year and later tax years.

6 Section MG 2 amended (Best Start tax credit)

(1)

In section MG 2(2)(a), replace “$3,388” with “$3,632”.

(2)

Subclause (1) applies for the 2023–24 tax year and later tax years.

7 Revocation

The Income Tax (Minimum Family Tax Credit) Order 2019 (LI 2019/290) is revoked.

Rachel Hayward,
Clerk of the Executive Council.

Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order comes into force on 1 April 2023. It amends the Income Tax Act 2007.

Under the Income Tax Act 2007, an inflation-indexed increase to the family tax credit and the Best Start tax credit is required once the cumulative value of quarterly increases in the New Zealand Consumers Price Index (CPI), measured from that applying on 1 October 2021, is 5% or more. CPI data indicates that the 5% threshold was exceeded by the end of the September 2022 quarter. An adjustment to the family tax credit and the Best Start tax credit is now required. This order—

adjusts the family tax credit, increasing the eldest child rate from $6,642 to $7,121 and the subsequent child rate from $5,412 to $5,802; and
increases the Best Start tax credit from $3,388 to $3,632.

The order also increases the minimum family tax credit threshold from $32,864 to $34,216 from 1 April 2023 to reflect main benefit increases applying from that date, and revokes the Income Tax (Minimum Family Tax Credit) Order 2019.

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 17 November 2022.

Notes

1 General

This is a consolidation of the Income Tax (Tax Credit) Order 2022 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.

2 Legal status

A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments. This presumption applies unless the contrary is shown.

Section 78 of the Legislation Act 2019 provides that this consolidation, published as an electronic version, is an official version. A printed version of legislation that is produced directly from this official electronic version is also an official version.

3 Editorial and format changes

The Parliamentary Counsel Office makes editorial and format changes to consolidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019. See also PCO editorial conventions for consolidations.

4 Amendments incorporated in this consolidation

Income Tax (Tax Credit) Order 2023 (SL 2023/288): clause 6

Income Tax (Tax Credit) Order 2022