There are four types of Working for Families payments.
Best Start is a payment of $60 per week for families supporting a newborn baby. Families who qualify for Best Start can receive the payment until their baby turns 1, no matter how much they earn.
After the first year, you can continue to receive Best Start payments until your child turns 3, if you earn under $93,858. The amount you receive depends on your family income. Best Start begins when paid parental leave finishes, you cannot receive both at the same time.
If you're receiving a benefit, you need to let Work and Income know about your child's birth. They'll set up your payments and let you know about any changes to your benefit.
Family tax credit
This payment depends on how much you earn, the number of dependent children you have and any shared care arrangements.
You cannot get the payment if you get a parent's allowance or a child's pension under the Veterans' Support Act 2014.
In-work tax credit
This is a payment available for families who have some income from paid work each week. If you're receiving an income-tested benefit or a student allowance you will not be eligible for this payment.
Income-tested benefits are:
- Jobseeker support
- Sole parent support
- Supported living payment
- Youth payment
- Young parent payment
- Emergency benefit
- Main benefit equivalent assistance
Up until 1 July 2020
Before 1 July 2020, working families needed to work for the required number of hours to get the in-work tax credit. Couples needed to normally work at least 30 hours combined a week. Single parents needed to normally work at least 20 hours a week.
From 1 July 2020
From 1 July 2020, working families no longer need to work a minimum number of hours to be able to get in-work tax credit payments. Your family can get the in-work tax credit if you are in paid work - for example working for salary or wages, or self-employed.
You can get the in-work tax credit if your income is from Accident compensation - including survivor payments, or paid parental leave.
As long as you are working, you can get the in-work tax credit if you receive other types of income, including:
- NZ Superannuation
- a Foster Care Allowance
- an Orphan's Benefit
- an Unsupported Child Benefit
- Veteran's Pension
- weekly compensation from Veterans' Affairs New Zealand.
You cannot get in-work tax credit when your family gets:
- a student allowance
- a parent's allowance or children's pension from Veterans' Affairs New Zealand
Minimum family tax credit
This is a payment if your annual family income is $27,768 or less after tax. It tops up your family's income to at least $534 a week after tax. To get this payment you must work for salary or wages and not be self-employed. A single parent must work at least 20 hours a week. In a two parent family, one or both parents between them, must work at least 30 hours a week.
The minimum family tax credit is not available to families receiving the following:
- an income-tested benefit
- a parent's allowance
- children's pension from Veterans' Affairs New Zealand.