Working for Families Tax Credits
Updated 2026 MSD rates. Working for Families (WfF) is a package of tax credits from Inland Revenue (IRD) that helps families with dependent children. It is not a Work and Income benefit, but it is an important part of the welfare system for low-to-middle income families.
Components
1. Family Tax Credit (FTC)
The main tax credit for families with dependent children aged 18 or under (or 18–19 if still in secondary school).
| Child | Annual Rate (NZ$) | Weekly Equivalent |
|---|---|---|
| Eldest child | $6,624 | $127.38 |
| Each subsequent child | $5,486 | $105.50 |
2. Best Start
A payment for families with a new baby aged under 1 (or under 3 for low-income families). No hours test.
- Rate: $3,380 per year ($65.00 per week) for each child under 1.
- For children aged 1–3: available to families with household income under $93,858.
- Best Start is paid until the child turns 3.
3. Minimum Family Tax Credit (MFTC)
Topped up to ensure working families with children get at least a minimum net income from work. Now largely replaced by the expansion of the In-Work Tax Credit, but still available in some cases.
4. In-Work Tax Credit (IWTC)
For families who work a minimum number of hours (20 hours per week for sole parents, 30 hours combined for couples):
- $97.50 per week for families with dependent children.
- Paid as part of the Family Tax Credit entitlement for eligible working families.
Income Thresholds and Abatement
- Full Family Tax Credit is available for families earning under $42,700 per year.
- Abatement rate: 13.5% of income over the threshold (added to the abatement rate from the previous year).
- Best Start abates at 20.5% once family income exceeds $93,858 (for ages 1–3).
How to Apply
- Apply through your myIR account with Inland Revenue.
- Provide details of your family income and dependent children.
- Payments can be made weekly, fortnightly, or as a lump sum at the end of the tax year (March).
Relationship to Benefits
Working for Families tax credits are separate from Work and Income benefits. You can receive both a main benefit and Working for Families if you meet the income criteria. However, your benefit income counts as income for the Working for Families assessment.
Child Support
If you receive Working for Families and are also entitled to child support, Inland Revenue will assess your eligibility separately. The two are not linked but may affect your overall family income.