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 of $395 a week after tax.
If your annual family income is $20,540 or less after tax, you may be eligible for the minimum family tax credit.
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 sole parent, and
- receive family tax credit.
As long as you meet these conditions, you're still eligible if your income includes:
- NZ Super, or
- a student allowance.
Example
Bryn and Neroli have four dependent children. Neroli works 10 hours a week in a community centre and, 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 30 hours a week for wages. Bryn also has some self-employed earnings. If their annual family income (after tax) is $20,540 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.
If you and/or your spouse or partner receive shareholder-employee income from a close company in which you have a 10% or more shareholding, you'll only qualify for the minimum family tax credit if you meet the conditions outlined above.
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
- a parent's allowance, or
- a veteran's pension.
Example
Nikki receives an invalid's benefit. Even if her family income (after tax) is $20,540 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: 11 Aug 2009
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