For individuals & families: As a parent
Parental tax credit
What is parental tax credit?
You may qualify for parental tax credit if, during the eight weeks after the child's birth, you and/or your partner did not receive any of the following:
- an income-tested benefit from the Department of Work and Income
- New Zealand Superannuation or veteran's pension
- a student allowance
- weekly accident compensation (for more than three months).
If you did not receive any of these forms of income, the amount of parental tax credit you receive depends on your total family income for the year.
How much is parental tax credit?
You can get up to $1,200 a year for each newborn child. The amount depends on:
- your income
- the number of days your baby was in your care (as the principal childcarer) during its first eight weeks. If your baby is in a neonatal unit, it is still in your care.
When you receive payments
If you register for parental tax credit within three months after the child is born, payments are made fortnightly.
Otherwise we make a lump sum payment after the end of the tax year (ie after 31 March), when we work out how much parental tax credit you are entitled to receive based on your income for the tax year. This usually means you receive the payment around July.
Payments to the principal child carer
We pay parental tax credit into the bank account of the baby's principal child carer for the first eight weeks after birth. If you are the principal child carer for part of these eight weeks, you may get some parental tax credit.
Find out about the payment options for parental tax credit.
Payment of parental tax credit if a baby dies
If a baby dies during the first eight weeks, we still pay the full amount of parental tax credit to the principal child carer.
Other pages in: As a parent
- Common questions and answers about child support for paying parents
- Tax credits (formerly rebates) for working parents
- Paid parental leave
- Common questions and answers on Working for Families Tax Credits
- What are Working for Families Tax Credits?
- Nominate someone to act on your behalf
- Common questions and answers about child support for custodians
- Young children
Date published: 15 Oct 2004
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