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Family tax credit

Family tax credit (FTC) is a payment for each dependent child.

Do I qualify for family tax credit?

You can get a family tax credit if you have dependent children and your family income is from:

  • salary or wages
  • self-employment
  • a student allowance
  • NZ Superannuation or Veteran's Pension
  • an income tested benefit, or
  • an other source.

You can't get family tax credit for child(ren) you receive a foster care allowance, orphan's benefit or unsupported child's benefit for.

Example - Foster care allowance

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. Angela meets the criteria and can receive family tax credit (and any other Working for Families Tax Credit entitlements) for the other two children in her care.

You can choose who pays you

If you receive an income-tested benefit, Work and Income generally pay your Working for Families Tax Credits within your benefit. But you can choose to receive your entitlement from Work and Income or Inland Revenue.

How much can I get?

The amount of family tax credit depends on:

  • your annual family income
  • the number of dependent children in your care, and
  • the age of these children.

The table below shows the maximum weekly rates families may be entitled to for the 2016-17 year.

Age/number of children Weekly rate
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

The following table shows the maximum annual rates families may be entitled to for the 2016-17 year.

Age/number of children Annual rate
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

Coming off a benefit

If you're coming off a benefit to start work you may be eligible for other Working for Families Tax Credits.

To make sure you receive all your entitlements, see Coming off a benefit.

Calculate your entitlement online

Our online calculator helps you estimate your Working for Families entitlement:

Enter the required information and the calculator will estimate your entitlement. The help text will guide you as you work through the calculator, which will take about 10 minutes to complete.

The calculator will not provide an accurate result if:

  • the number of dependent children in your care changes often
  • you currently receive Working for Families Tax Credits
  • you qualify for the minimum family tax credit and you receive income other than salary or wages
  • your "other income" adjustments total to a negative amount.

Next steps

Check whether you're entitled to any other Working for Families Tax Credits: