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Minimum family tax credit

Minimum family tax credit (MFTC) is a payment made to families with dependent children, so there is a minimum income each week after tax.

Minimum family tax credit tops up a family's annual income (net income after tax has been deducted) to $23,816 a year ($458 per week) for the tax year ending 31 March 2018.

Do I qualify for minimum family tax credit? 

You can receive minimum family tax credit if you work for a salary or wage for at least 30 hours each week (for a couple), or 20 hours each week as a single parent and earn below the annual income level.

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 doesn’t qualify

You won't qualify for the weeks when you’re not working the required hours for salary and wages and your family income is only from:

  • NZ Superannuation 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.

You may still qualify

You may qualify for any weeks you receive the above income AND work for salary and wages for the required hours

You don't qualify:

  • for the weeks when your family income includes an income-tested benefit, or
  • if you and/or your spouse or partner don’t work the required hours because you are on unpaid leave, including sick leave without pay, or
  • if you are on strike, or
  • locked out.

Example - Income tested benefit

Nikki receives a supported living payment. If her family income (after tax) is $18,900 she can't get the minimum family tax credit as she is receiving an income tested benefit.

Example - Wages and self-employed income 

Bryn and Neroli have four dependent children. Neroli works 32 hours a week. Bryn is self-employed. Their annual family income (after tax) is $22,910. They are entitled to receive minimum family tax credit as Neroli works the required number of hours for wages. If the family income was from Bryn’s self-employed income only, the family would not qualify.

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:

Go to the Working for Families Tax Credits calculator

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 can get any of the other Working for Families Tax Credits payments: