New or returning residents

If you’re a new or returning resident to New Zealand after 10 years absence, you must choose between getting Working for Families payments (including Best Start) or keeping your temporary tax (transitional residence) exemption on your foreign-sourced income.

What is a temporary tax exemption?

These apply for 4 years to any income (except salary or wages) you’re getting from overseas. You may have the exemption if you’re a new migrant, or a New Zealander returning home after being overseas for 10 years or more.

Temporary tax exemption

You cannot have both

You cannot have both Working for Families and a temporary tax exemption. That means if you apply for Working for Families, you’ll lose your exemption.

And once you’ve applied for Working for Families, you cannot change your mind.

Rules when you have a partner

Are you in a relationship?

A household can either have Working for Families or a temporary tax exemption, they can’t have both.

If you have the temporary tax exemption and apply for Working for Families, you will lose your exemption.

If you have the temporary tax exemption and your partner is the carer of the children, they will not be able to apply for Working for Families. This is because they don’t meet the definition of being a principal caregiver while you have the temporary tax exemption.

If you don’t have a temporary tax exemption but your partner does, you are not able to apply for Working for Families. This is because you don’t meet the definition of being a principal caregiver while your partner has the temporary tax exemption.

Work out what’s best for you before you apply

If you have a temporary tax exemption and you qualify for Working for Families, we recommend you consider your options before you apply.

You can always apply for Working for Families once your exemption ends.