New Zealand Working for Families Tax Credits

Working for Families (WfF) is New Zealand’s ongoing family assistance package. It helps with the cost of raising dependent children through four payments: Family Tax Credit, In-work Tax Credit, Minimum Family Tax Credit, and Best Start. A family may qualify for one payment or several. The amount is not a single fixed grant: Inland Revenue works it out from family income, the number of dependent children, the type of income, work, government payments, and any shared-care arrangement.

There is no annual competition or one-off application round to wait for. Working for Families accepts registrations on an ongoing basis. The current official material covers payments for the tax year from 1 April 2026 to 31 March 2027, while some rules, such as the Best Start treatment of a new baby, depend on whether the child was born before or on or after 1 April 2026. Apply when you become eligible and keep your information current rather than treating this page as a dated scholarship or grant listing.

Opportunity snapshot

The figures above are guide amounts, not a promise of payment. Inland Revenue’s official chart says the amounts can change when family circumstances change and recommends its calculator for families with higher income, more than six children, or shared care. The chart also uses weekly, fortnightly, and annual calculations, so a weekly amount is rounded down from the full-year entitlement.

The four payments

Family Tax Credit

Family Tax Credit (FTC) is the main WfF payment. It is available regardless of the source of the family’s income, provided the family meets the general eligibility rules and the child qualifies. For the 2026–27 settings, the full rate is $152 per week for the eldest child and $124 per week for every other dependent child. At the full-rate threshold, that is $7,921 for a year for the eldest child and $6,454 for each other child.

The full FTC rate applies when family income is $44,900 or less. Above that amount, Inland Revenue subtracts $44,900 from family income and multiplies the difference by 27.5%. That abatement is taken from the full FTC. If it is larger than the FTC, the remaining amount can reduce any In-work Tax Credit entitlement. The actual calculation can also reflect the number of children, their care arrangements, and income that is included in family scheme income, so the published full rates should be used as a starting point rather than a personal quotation.

In-work Tax Credit

In-work Tax Credit (IWTC) is for a family with income from paid work. Paid work can include salary or wages, self-employment, or income as a shareholder employee in the circumstances described by Inland Revenue. Passive income on its own, such as interest, dividends, rent, or royalties, does not satisfy the paid-work condition.

For 1, 2, or 3 children, the 2026–27 full-year maximum is $7,670, equivalent to up to $147 per week. For four or more children, the family can receive the $7,670 amount for the first three children plus $780 per year for each child after the third. That is $15 per week for each additional child when expressed as a weekly rounded amount. This is a temporary increase: the official page says the maximum can return to $97 per week after 31 March 2027, or sooner if the stated petrol-price condition is met. Families should check the current official page before budgeting beyond this period.

The IWTC is reduced by abatement above $44,900. A family receiving a main benefit generally cannot receive IWTC, while other government payments can affect which WfF payments are available. The official government-payment table should be checked if the family receives a benefit, paid parental leave, New Zealand Super, student allowance, an Unsupported Child Benefit, or ACC-related payments.

Minimum Family Tax Credit

Minimum Family Tax Credit (MFTC) is a top-up for working families on a low net income. If eligible, it brings income up to $703 per week after tax, or $36,604 for the year. The entitlement does not depend on the number of children, but it does depend on the family’s income and whether the family meets the work conditions.

A single parent must work at least 20 hours per week. In a two-parent family, one or both parents together must work at least 30 hours per week. The work must be paid salary or wage income with tax taken out before payment. Self-employed income, partnership income, and certain shareholder salaries do not qualify on their own, although a person can sometimes combine those sources with a qualifying salary or wage.

The net family income limit is strict. Inland Revenue’s current example shows that even a small increase above $36,604 after tax can remove MFTC entitlement and create an amount to repay. Families receiving MFTC should report changed hours, wages, family composition, or other income promptly through myIR.

Best Start

Best Start supports a child during the first three years of life. The full payment is up to $77 per week per qualifying child, but the rule for the first year changed for children born on or after 1 April 2026.

For a child born on or after 1 April 2026, Best Start is income-tested from the first year. The full weekly amount is available up to family income of $79,000. Above $79,000, the annual entitlement reduces by 21 cents for every dollar over the threshold. The same $77 weekly amount and $79,000 threshold apply in the second and third years.

For a child born before 1 April 2026, the first year is not dependent on family income and the full $77 weekly amount is available for that first year. The second and third years are income-tested using the $79,000 threshold. Best Start cannot be paid at the same time as paid parental leave for the same period; when paid parental leave applies, Best Start starts after that payment finishes. A family already registered for WfF should tell Inland Revenue about the new child so the entitlement can be assessed.

Who can qualify

The general test is not limited to biological parents. Inland Revenue says a person may qualify if they are aged 16 or over, care for a dependent child, are the principal caregiver, and meet the residence requirements. A principal caregiver is the person with primary day-to-day responsibility for the child. A caregiver does not need to be the child’s parent.

A dependent child is aged 18 or under and in the caregiver’s care. The child must be aged 15 or younger, or aged 16 or 17 and financially dependent, or aged 18, financially dependent, and still at school or a tertiary institution. The child must not be married, in a civil union, or in a de facto relationship. A child aged 16 or over may be treated as independent if, for example, they work 30 hours or more per week, receive a student allowance or main benefit, live apart from the caregiver, or otherwise do not qualify as a dependent child.

The child generally needs to live with the caregiver for at least one-third of a four-month period. Shared care can still qualify, but the amount may be reduced. Inland Revenue describes the equivalent annual test as at least 122 days, or at least five days a fortnight, for FTC and Best Start. The MFTC shared-care rule is different: under seven days a fortnight gives no MFTC for that child, seven days gives half, and eight or more days gives the full entitlement. IWTC generally requires care for at least five days a fortnight for the principal-caregiver condition.

There are two residence routes. Under the caregiver route, the person must be a New Zealand resident, have lived in New Zealand for 12 months in a row at any time, be a New Zealand tax resident while receiving WfF, and not be a transitional tax resident or the partner of one. Under the child route, the child must be a New Zealand resident and present in New Zealand. Someone who is in New Zealand illegally or holds only a temporary permit or visa is not entitled under the official residence guidance. New or returning residents should also check the warning about choosing WfF instead of a temporary tax exemption on overseas income.

How to apply

1. Check eligibility. Use Inland Revenue’s Working for Families eligibility tool, then review the separate pages for dependent children, principal caregiving, shared care, and residence. The four payments have additional rules, especially IWTC and MFTC.

2. Prepare the information. Before registering, gather IRD numbers for the caregiver, partner, and child. A child needs an IRD number if the family wants WfF payments for more than eight weeks. Also prepare estimated family income for the tax year, private child-support amounts paid or received, a bank account number, and information about any temporary tax exemption on overseas income.

3. Register in myIR. Log in to myIR, select “I want to…”, choose “Register for Working for Families,” complete the details, and submit. Inland Revenue says the online route can use income information already held on the account. Families without a myIR account can use the registration tool or contact Inland Revenue through the official Working for Families contact options.

4. Choose a payment method. Weekly or fortnightly payments are based on estimated family income and circumstances for the tax year. A lump sum is paid after 31 March using actual family income, so no income estimate is needed for that option. The choice can be changed through the available Inland Revenue channels.

5. Read the notice of entitlement. Inland Revenue sends a notice stating the payment amount and first payment date. The official registration page says a notice generally arrives the next day through myIR or within 10 working days when myIR is not used.

6. Update changes immediately. Report changes to family income, hours of work, partner status, address, bank account, children, care arrangements, or contact details. Weekly and fortnightly payments can be overpaid when the estimate is too low or circumstances change. After 31 March, Inland Revenue squares up those payments against actual family income; an underpayment is refunded and an overpayment must be repaid.

Families receiving a main benefit should also check the Work and Income route. Inland Revenue and the Ministry of Social Development can both pay WfF, and the government-payment rules determine which components can be paid alongside a main benefit. Do not assume that a change from a benefit to paid work will update every payment automatically; report the change and confirm the account with the relevant agency.

Practical checks before applying

The most useful first calculation is family income for the relevant tax year, not just the applicant’s wages. Inland Revenue combines the applicant’s and partner’s income and may include more than ordinary taxable salary. Government payments in the official table can also be included. If income is variable, the weekly or fortnightly option offers cash during the year but carries a square-up risk. A lump sum avoids estimating during the year, but it does not provide regular payments while the year is in progress.

Families with a baby should record the birth date carefully. The 1 April 2026 boundary changes whether Best Start is income-tested in the first year. Families with separated caregivers should record the actual shared-care pattern, not only the wording of a formal arrangement, because the care days affect FTC and Best Start and have different effects on MFTC and IWTC. Families with a temporary visa, transitional tax residence, or overseas income should use the official residence and family-income guidance before registering.

Working for Families is therefore a live, rolling public benefit rather than a closed annual opportunity. The correct action is to check the current Inland Revenue eligibility tool, register through myIR or the official registration route, and keep the estimate and family details accurate throughout the tax year.

Official resources

• Working for Families overview
• Can you get Working for Families?
• Register for Working for Families
• Working for Families weekly payments 2027 chart
• Family Tax Credit
• In-work Tax Credit
• Minimum Family Tax Credit
• Best Start
• Residency requirements