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MF 7: Orders in Council
or “Governor-General can adjust tax credits through official orders”
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“Who can get the Best Start tax credit and how it's calculated”

You can get a tax credit called the Best Start tax credit if you meet certain conditions. You need to qualify for family scheme entitlements and be the main caregiver for a child under 3 years old. The child must be born on or after 1 July 2018, or if born before that date, their due date was on or after 1 July 2018.

To work out how much Best Start tax credit you get, you use a formula. The formula is: Best Start tax credit minus credit abatement. The Best Start tax credit part is calculated using a formula in section MG 2. The credit abatement part is calculated using a formula in section MG 3.

It’s important to know that section 80KW of the Tax Administration Act 1994 can change how this rule works.

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Next up: MG 2: Best Start tax credit

or “Financial support for families with young children”
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Part M Tax credits paid in cash
Best Start tax credit

MG 1Best Start tax credit entitlement

  1. A person is entitled to a tax credit, the Best Start tax credit, for an entitlement period for a dependent child equal to an amount calculated using the formula in subsection (2), if—

  2. the person qualifies under section MC 2 (Who qualifies for entitlements under family scheme?); and
    1. the person is a principal caregiver for the dependent child during the entitlement period; and
      1. the dependent child is aged less than 3 years old; and
        1. the dependent child is born—
          1. on or after 1 July 2018; or
            1. before 1 July 2018, but the expected due date for the child is on or after 1 July 2018.

            2. The formula is—

              Best Start tax credit − credit abatement.

              Where:

              • In the formula,—

              • Best Start tax credit is the person’s Best Start tax credit for the entitlement period for the dependent child, calculated using the formula in section MG 2:
                1. credit abatement is the person’s Best Start credit abatement, calculated using the formula in section MG 3.

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

                  Notes
                  • Section MG 1: inserted, on , by section 22 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).