Are you eligible for Working for Families Tax Credits?

You may be eligible for Working for Families assistance. It can be complicated to work out your entitlement. If your circumstances change your entitlement might too. And you need to be aware of the tax implications.

Family Tax Credit is available to eligible families who meet the income threshold, with children under 16 years, children aged 16 or 17 if they’re financially dependent on the carer, and children aged 18 years if they are at school or tertiary training and still financially dependent.

In-work Tax Credit is available to eligible families who don’t receive an income-tested benefit or student allowance and have some weekly income from paid work. You are no longer eligible to receive it if you stop working or start receiving an income tested benefit or student allowance. If you receive it, and your work hours change, advise Inland Revenue. If you take an unpaid break from work, you may be able to keep receiving this tax credit for up to 2 weeks. Again, advise Inland Revenue.

Minimum Family Tax Credit guarantees a net income level, currently $35,316 for the 2025-26 income year. To receive it, at least one parent in the family must be working for salary or wages.

Best Start is a payment of up to $3,838 per year, available to the main carer of a child aged from new-born to three years, if the applicant is a NZ citizen or permanent resident, or cares for a child who is a resident and present in NZ.

FamilyBoost entitles eligible families to reimbursement for up to 25% of early childhood education (ECE) fees, up to a maximum of $975 per quarter (after the 20 Hours ECE and Ministry of Social Development’s childcare subsidy have been taken into account).

Inland Revenue needs to know if you receive other types of income to ensure your entitlements are correct. If you receive Working for Families Tax Credits, you cannot use losses from businesses, investments, or rental properties to reduce your income or to work out your entitlement.