Working for Families: what the four payments are

Best Start, Family Tax Credit, In-Work Tax Credit and Minimum Family Tax Credit each have different eligibility and abatement rules.

Four payments

Best Start, Family Tax Credit, In-Work Tax Credit, Minimum Family Tax Credit

Best Start

Up to $77 a week for the first three yearsInland Revenue, Best Start

Best Start abatement threshold

$79,000 family incomeInland Revenue, Working for Families Best Start

Family Tax Credit eldest child

$7,921 a yearInland Revenue, Working for Families Family Tax Credit

Family Tax Credit subsequent children

$6,454 a year eachInland Revenue, Working for Families Family Tax Credit

Family Tax Credit abatement rate

27.5% of income above $44,900Inland Revenue, Working for Families Family Tax Credit

In-Work Tax Credit maximum

$7,670 a year for 1-3 children (a temporary increase from 1 April 2026; it returns to $5,070 after 31 March 2027)Inland Revenue, Working for Families In-Work Tax Credit

Minimum Family Tax Credit

$703 a week, income-tested at $36,604 after taxInland Revenue, Working for Families Minimum Family Tax Credit

The four payments at a glance

Working for Families is a set of four separate payments, each with its own eligibility and abatement rules. Best Start is up to $77 a week for the first three years of a child's life, income-tested above $79,000. Inland Revenue, Best Start (opens in a new tab) The Family Tax Credit is the main ongoing payment, $7,921 a year for the eldest child and $6,454 for each subsequent child, abating at 27.5% of income above $44,900. Inland Revenue, Family Tax Credit (opens in a new tab) The In-Work Tax Credit is $7,670 a year for one to three children and $7,670 plus $780 for each child after that (a temporary increase from 1 April 2026 that returns to $5,070 after 31 March 2027), income-tested in the same way and requiring income from paid work. Inland Revenue, In-Work Tax Credit (opens in a new tab) The Minimum Family Tax Credit tops up after-tax income to $36,604 a year, $703 a week, for working families, with minimum hours of work requirements. Inland Revenue, Minimum Family Tax Credit (opens in a new tab)

Inland Revenue administers all four. The Minimum Family Tax Credit has extra conditions about hours of work. The Ministry of Social Development administers other family-related payments separately, and some of those affect Working for Families entitlement.

Best Start

Best Start is up to $77 a week for each child in the first three years of the child's life. For children born on or after 1 April 2026, the full $77 is paid when family income is at or below $79,000, and reduces by 21 cents for every dollar above that. For children born before 1 April 2026, the first year is not income-tested and pays the full rate, then becomes income-tested from the child's first birthday. The abatement threshold is $79,000 and the rate is 21%. Abatement applies from the start of eligibility, which is after any paid parental leave ends, and is recalculated each tax year. Inland Revenue, Working for Families Best Start (opens in a new tab)

Family Tax Credit

The Family Tax Credit is the main payment for Working for Families recipients. At income below $44,900 the full amount applies: $7,921 a year for the eldest child and $6,454 for each other child. Above $44,900 the abatement reduces it at 27.5 cents per dollar of family income above the threshold. At high enough income the abatement equals the full credit and the payment stops; any abatement left over reduces the In-Work Tax Credit. Inland Revenue, Working for Families Family Tax Credit (opens in a new tab)

In-Work Tax Credit

The In-Work Tax Credit requires income from paid work as a condition of eligibility. There is no minimum-hours test; hours rules applied only before 1 July 2020. Income from self-employment or as a shareholder-employee qualifies even when the company makes a loss. The payment is $7,670 a year for one to three children and $7,670 plus $780 for each child after that (a temporary increase from 1 April 2026; it returns to $5,070 after 31 March 2027, and may reduce earlier if petrol falls below $3 a litre for four weeks). Like the Family Tax Credit, it abates at 27.5 cents in the dollar above $44,900, and any abatement remaining after the Family Tax Credit is reduced to zero is applied to the In-Work Tax Credit. Inland Revenue, Working for Families In-Work Tax Credit (opens in a new tab)

Minimum Family Tax Credit

The Minimum Family Tax Credit tops up qualifying after-tax family income to $36,604 a year, or $703 a week. The income test uses net family income, not gross income. A single parent must work at least 20 hours a week for a salary or wage; a couple must work at least 30 hours combined. Self-employed income alone does not qualify, although salary or wage work alongside it can qualify if the income and hours conditions are met. Entitlement does not vary with the number of children. Inland Revenue, Minimum Family Tax Credit (opens in a new tab).

Because the credit tops after-tax income up to $36,604, each extra dollar of after-tax income reduces it by a dollar, and payments made on a lower income estimate must be repaid if actual income ends above the limit. This is the sharpest abatement edge in the Working for Families package. Inland Revenue, Minimum Family Tax Credit (opens in a new tab).

Related guides