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Family tax credit

What it is

Family tax credit 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
  • the number of dependent children in your care, and
  • the age of these children.

You can work out an estimate of how much you might get by:

  • using our calculator, or
  • download our entitlement worksheet.

If you receive your Working for Families Tax Credits weekly or fortnightly

We'll calculate your entitlement based on an estimate of your family income. The table below shows the maximum weekly rates families are entitled to for the 2012-13 year.

Age/number of children Weekly rate from 1 April 2012 to 31 March 2013
First child if under 16 $92
First child if 16 or over $101
Subsequent child if under 13 $64
Subsequent child if 13 to 15 $73
Subsequent child if 16 or over $91

If you receive your 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 following table shows the maximum annual rates families may be entitled to for the 2012-13 year.

Age/number of children Annual rate from 1 April 2012 to 31 March 2013
First child if under 16 $4,822
First child if 16 or over $5,303
Subsequent child if under 13 $3,351
Subsequent child if 13 to 15 $3,822
Subsequent child if 16 or over $4,745
Abatement threshold $36,350

Who can get it

You can get a family tax credit from us if your main family income is from:

  • salaries or wages, or self-employed earnings
  • a student allowance, or
  • NZ Super or Veteran's Pension.
Note

If your main family income is from income tested benefits, you can get family tax credit (FTC), usually paid by Work and Income with your benefit, and in some circumstances you may prefer to have Inland Revenue pay your FTC.

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 2012-2013 worksheet (IR271) they estimate that they would be entitled to a family tax credit of $373 a fortnight. They would also be entitled to the 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 care for her daughter's two children, aged 15 and 17 - while their mother is overseas. Sandra receives NZ Super payment of $263.90 a week. Using the online calculator Estimate your Working for Families Tax Credits (1 April 2012 to 31 March 2013) Sandra calculates that she is entitled to a family tax credit of $174 a week. Sandra applies for a family tax credit from Inland Revenue.

Important

If your main family income is from income-related benefits, you can get a family tax credit from Work and Income. You can only receive payments from either Work and Income or Inland Revenue.

Who can't get it

You can't get family tax credit:

  • for any child(ren) you receive a foster care allowance, orphan's benefit or unsupported child's benefit, or
  • if you receive a parent's allowance.
Example

Angela has three dependent children. She receives a foster care allowance for one of the children in her care. This means she cannot receive family tax credit for this child. If Angela meets the criteria she can receive family tax credit (and any other Working for Families Tax Credit payments) for the other two children in her care. 

What to do next

Find out more about the other Working for Families Tax Credits payments:

Then when you know what type of payment you might receive:

 


Date published: 29 Mar 2012

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