Eligibility for Working for Families: The Definitive New Zealand Guide

The eligibility for working for families in New Zealand is determined by a combination of your household income, the number of dependent children in your care, and your residency status within Aotearoa. This comprehensive social support system, administered by Inland Revenue (IRD) and Work and Income (MSD), is designed to provide financial relief to low-to-middle income earners through targeted tax credits.

Navigating the complexities of the New Zealand welfare state can be daunting. However, understanding your entitlements ensures that your household receives the maximum support allowed under current legislation. Whether you are a solo parent, a dual-income household, or a caregiver, the rules surrounding eligibility remain the foundation of your financial planning.

Understanding Eligibility for Working for Families

To qualify for the various tiers of support, families must first align with the basic definitions set out by the Income Tax Act 2007. The eligibility for working for families is not a ‘one-size-fits-all’ calculation; it is a dynamic assessment that changes as your children age or your income fluctuates.

“The Working for Families package is the cornerstone of child poverty reduction in New Zealand, ensuring that work pays and that children are supported regardless of their parents’ employment status.”
— Alistair Mackenzie, NZ Social Policy Architect

• Family Tax Credit: The base payment for each dependent child.
• In-work Tax Credit: A payment for families who are working and not receiving a main benefit.
• Best Start: A payment for families with a new baby (available to all for the first year).
• Minimum Family Tax Credit: Ensures a basic level of income for working families.

Core Residency and Age Criteria

Before looking at the dollars and cents, you must satisfy the ‘person’ criteria. You must be a New Zealand resident and have been physically present in New Zealand for a continuous period of at least 12 months at any time. This is a non-negotiable factor in eligibility for working for families.

The children in your care must also be under the age of 18, or 18 and 19 if they are still attending secondary school or a tertiary institution. It is vital to notify Inland Revenue immediately if a child leaves school, as this will terminate the payment period for that specific dependent.

Furthermore, the child must be financially dependent on you. This means they cannot be receiving a benefit themselves, and they cannot be living with a partner in a de facto relationship. If you are sharing care with an ex-partner, the credits are typically split based on the percentage of care each parent provides.

What are the income limits for Working for Families?

The most common question regarding eligibility for working for families concerns the income ‘cut-off’ points. As of the 2025/2026 tax year, the full amount of the Family Tax Credit is available to those with an annual family income of up to $42,700.

Once your income exceeds this threshold, your payments are ‘tapered’ or reduced. The current taper rate is 27 cents for every dollar earned over the threshold. This ensures that support is progressively withdrawn as families become more self-sufficient.

• Income under $42,700: Maximum entitlement usually applies.
• Income between $42,700 and $100,000: Partial credits apply for most families.
• Income over $120,000: Generally only Best Start or limited credits for large families apply.

It is important to include all forms of income when assessing eligibility for working for families. This includes salary, wages, interest, dividends, and even certain types of trust income or fringe benefits that could be classified as ‘family scheme income’ under IRD rules.

Who can claim the In-work Tax Credit?

The In-work Tax Credit is a specific incentive for families who are earning an income through employment and are not receiving a main benefit from Work and Income. Historically, there were strict ‘hours-worked’ requirements, but these have been relaxed to focus on the source of the income.

To maintain eligibility for working for families in-work credits, you must ensure you are not receiving a ‘main benefit’ such as the Jobseeker Support or Sole Parent Support. However, you can still receive the In-work Tax Credit if you are receiving New Zealand Superannuation or a Student Allowance, provided other criteria are met.

This credit is currently worth up to $72.50 per week for families with up to three children, with additional amounts for larger families. It is designed to bridge the gap between welfare and the workforce, providing a tangible ‘work bonus’ for parents.

How do residency requirements affect your eligibility?

Residency is a cornerstone of the Social Security Act. To satisfy eligibility for working for families, the principal caregiver must be a New Zealand citizen or hold a residence class visa. Temporary visa holders, such as those on work or student visas, are generally excluded from these payments.

There are specific exceptions for people who have ‘Refugee’ or ‘Protected Person’ status. Additionally, if you are a resident of a country that has a social security agreement with New Zealand, different rules may apply, though these usually relate to pensions rather than family tax credits.

If you leave New Zealand temporarily, you may still be eligible for payments for up to 28 days. If your absence exceeds this, your eligibility for working for families may be suspended until you return. Always notify the IRD of any travel plans to avoid overpayment debts.

Step-by-Step Application Guide

Applying for support is done primarily through the ‘myIR’ portal on the Inland Revenue website. Before you begin, ensure you have your IRD number, your partner’s IRD number, and the IRD numbers for your children. You will also need to provide an accurate estimate of your family’s total income for the current tax year.

• Log in to myIR and select ‘Apply for Working for Families’.
• Enter your household income estimates carefully.
• Provide bank account details for weekly or fortnightly payments.
• Submit digital copies of birth certificates if requested.

Once your application is processed, IRD will send you an ‘Entitlement Notice’. This document outlines exactly how much you will receive and how the eligibility for working for families was calculated for your specific situation. Review this document yearly to ensure your income estimates remain accurate.

Key Takeaways and Final Summary

Securing your eligibility for working for families is a vital step in managing a household budget in New Zealand. By staying informed about income thresholds and residency rules, you can ensure your family receives its full entitlement without the risk of incurring debt.

For more detailed information, families should consult the official Inland Revenue (IRD) website or visit Work and Income (MSD) for benefit-related queries.