Family tax credit (previously called family support)
What it is
Family tax credit (previously called family support) is a payment for each dependent child aged 18 or younger.
How much you can get
How much you can get depends on:
- your total annual family income before tax
- the number of dependent children in your care, and
- the age of these children.
You can work out how much you can get if you:
- calculate it online, or
- download our entitlement worksheet.
How your entitlement increases
From 1 October 2008 the Working for Families Tax Credits rate and income abatement threshold increase to take account of inflation.
The online Working for Families calculator and our Working for Families Tax Credits section have been updated, as well as the automated telephone service calculator which you can use to get an estimate of what your entitlement will be from 1 October 2008.
If you receive Working for Families Tax Credits weekly or fortnightly, you'll automatically receive the new rates from the first payment after 1 October 2008 (which is 7 October 2008).
The table below shows existing weekly family tax credit rates and the new rates:
| Age/number of children | Current 1 April 2008 | New rate 1 October 2008 |
|---|---|---|
| First child if under 16 | $82.00 | $86.29 |
| First child if 16 or over | $95.00 | $99.96 |
| Subsequent child rate if under 13 | $57.00 | $59.98 |
| Subsequent child rate if 13 to 15 | $65.00 | $68.40 |
| Subsequent child rate if 16 or over | $85.00 | $89.44 |
If you receive Working for Families Tax Credits in a lump sum after the end of the tax year, we'll use the annual rate to work out your correct entitlement. The table below shows the existing Working for Families Tax Credit annual rates and the new annual rates that apply for the 2008-09 income year and the annual rate that will apply for the 2009-10 year.
| Age/number of children | Current 1 April 2008 | New rate from 1 October 2008 | Annual rate for 2009 |
|---|---|---|---|
| First child if under 16 | $4,264 | $4487 | $4,376 |
| First child if 16 or over | $4,940 | $5198 | $5,069 |
| Subsequent child if under 13 | $2,964 | $3119 | $3,042 |
| Subsequent child if 13 to 15 | $3,380 | $3557 | $3,469 |
| Subsequent child if 16 or over | $4,420 | $4651 | $4,536 |
| Abatement threshold | $35,000 | $36827 | $35,914 |
Note
The annual rate for 2009-10 shows the full-year effect of the new thresholds and rates whereas the annual rate for 2008/09 is calculated using the rates that applied in the period 1 April 2008 to 30 September 2008 and 1 October 2008 to 31 March 2009, reflecting that the rate change is mid-year.
Income threshold
The income threshold above which the family tax credit, in work tax credit and parental tax credit abatement will rise from 1 October 2008 to take account of inflation. The current abatement threshold is $35,000, and from 1 October 2008 it will increase to $36,827. As the abatement threshold is being changed part-way through the year, an annual threshold will apply for the 2008-09 year. The threshold for 2008-09 will be $35,914.
Who can get it
You can get a family tax credit (previously called family support) from us if your main family income is from:
- salaries or wages, or self-employed earnings
- a student allowance, or
- NZ Super.
Examples
Example 1
Jennie and Nick are both working full-time. Their total annual family income is $45,000. They have three school-aged children. Using the Working for Families Tax Credits 2008 worksheet they estimate that they would be entitled to a family tax credit of $310 a fortnight, as well as in-work tax credit. They apply for both family tax credit and in-work tax credit.
Example 2
Sandra is 66 years old and living alone. She retired about a year ago and receives NZ Super from Work and Income. This is her only form of income. As her daughter works overseas for six to eight months each year, Sandra has to care for her daughter's two dependent children, aged 15 and 17, as the principal child carer. Sandra receives NZ Super payment of $263.90 a week. Using the online calculator Estimate your Working for Families Tax Credits for the 2008 financial year, Sandra calculates that she is entitled to a family tax credit of $160 a week. Sandra applies for a family tax credit.
Important
If your main family income is from income-related benefits, you can get a family tax credit (previously called family support) from Work and Income. You can only receive payments from either Work and Income or us.
Who can't get it
You can't get a family tax credit (previously called family support) if you receive a:
- foster care allowance, orphan's benefit or unsupported child's benefit, for one or more children, or
- parent's allowance.
Example
Angela has three dependent children and receives a surviving spouse pension from Work and Income for her late husband Richard. She needs to check with Work and Income whether she qualifies for a parent's allowance. If so, she can't get a family tax credit (previously called family support).
What to do next
Check whether you can get any of the other Working for Families Tax Credits payments:
Then when you know what type of payment you might receive:
Date published: 22 Sep 2008
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