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Working for Families Tax Credits
Ngā tukunga tāke me whakaruruhau te iwi

Minimum family tax credit

What it is

Minimum family tax credit is a payment made to families with dependent children aged 18 or younger, so they have a minimum income each week after tax.

Minimum family tax credit makes sure that a family's annual income (net income after tax has been deducted) doesn't fall below $23,036 a year ($443 per week) for the tax year ending 31 March 2016.

Important

When you're working out your family income you need to make adjustments if you pay or receive child support, or have business losses. If you'd like help with this, use our Working for Families Tax Credits calculator under "Work it out", or call us on 0800 227 773.

Who can get it

You can get the minimum family tax credit if you:

  • work for a salary or wage for at least:
    • 30 hours each week as a couple, or
    • 20 hours each week as a single parent, and
  • receive family tax credit.

Unless you or your spouse or partner also work the required hours for salary or wages, you won't qualify for minimum family tax credit for the weeks when your family income is from:

  • NZ Super or Veteran's Pension
  • student allowance
  • self-employment (includes one partner being employed by the other)
  • shareholder-employee income from a close company you have a 10% or more shareholding in
  • contract payments to non-resident contractors.
Example

Bryn and Neroli have four dependent children. Neroli works 10 hours a week in a community centre. Bryn works 20 hours a week as a bus driver and up to 15 hours a week as a private tour guide. Together, they work over 30 hours a week for wages. Bryn also has some self-employed earnings. If their annual family income (after tax) is $22,776 or less, Bryn and Neroli may be entitled to the minimum family tax credit.


 

Note

If you and/or your spouse or partner would normally work the required weekly hours but are injured and receive accident compensation instead, you can still get the minimum family tax credit.

Who can't get it

You can't get the minimum family tax credit for the weeks when your family income includes:

  • an income-tested benefit, or
  • a parent's allowance.
Example

Nikki receives a supported living payment. Even if her family income (after tax) is $22,776 or less, she can't get the minimum family tax credit.


 

Note

You also can't get the minimum family tax credit if you and/or your spouse or partner are:

  • on leave or sick leave without pay
  • on strike, or
  • locked out.

Next steps

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: 16 Apr 2015

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