Working for Families
Working for Families (WFF) is a government scheme that provides tax credits to families with dependent children aged 18 or under (or 16–18 and not receiving a benefit or student allowance). The amount you receive depends on your family income, number of children, and ages of your children.
The main credits are: Family Tax Credit (a per-child payment available to all qualifying families), In-Work Tax Credit (an additional payment for families where parents work a minimum number of hours), Minimum Family Tax Credit (tops up income to a minimum level for working families), and Best Start (a payment for families with children under 3).
WFF entitlements reduce as family income rises above certain thresholds. You can receive payments weekly, fortnightly, or as a lump sum after the end of the tax year. Apply through myIR or Work and Income.
How it works
Once your combined family income rises above the $44,900 abatement threshold, your total entitlement across all the credits you qualify for is reduced together by 27.5 cents for every extra dollar of family income — it isn't calculated separately credit by credit, so a rise in income reduces your Family Tax Credit, In-Work Tax Credit, and Best Start payments in proportion, not just one of them.
The credits interact rather than simply adding up independently: the Family Tax Credit is the base per-child payment, the In-Work Tax Credit is only available to families meeting a minimum-hours work test, the Minimum Family Tax Credit tops up net income to a guaranteed floor specifically for full-time working low-income families, and Best Start supports families with a child under 3. A family's actual weekly payment is the sum of whichever of these they qualify for, then abated as one combined total above the threshold.
Because Working for Families is paid throughout the year based on your estimated family income, IRD reconciles your actual family income after the tax year ends, in the same spirit as the provisional tax wash-up — if your real income turns out higher than estimated, you may need to repay some of what was paid, and if it was lower, you may be topped up.
Example: Working for Families abatement
The Nguyen family has one child aged 2 (qualifying for Best Start) and meets the in-work test for the 2026-27 tax year. Their combined family income is $54,900 — $10,000 above the $44,900 abatement threshold.
Before abatement, their weekly entitlement is Family Tax Credit $152.33 + In-Work Tax Credit $147.50 + Best Start $77.71 = $377.54 a week, or $19,632.08 a year.
Abatement then reduces the Family Tax Credit and In-Work Tax Credit portion by 27.5 cents for every dollar of family income above $44,900: 27.5% x $10,000 = $2,750 a year. (Best Start has its own separate, much higher abatement threshold after the child's first year, which doesn't bite at this income level.)
Their annual entitlement after abatement = $19,632.08 − $2,750 = $16,882.08.
Frequently asked questions
Do I need to apply for Working for Families every year?
No — once registered, IRD carries your details forward each year, but you should keep your estimated family income and family details (like a new baby or changed care arrangements) up to date in myIR, since payments are reconciled against your actual income at year end.
What happens if I underestimate my family income during the year?
If your actual family income ends up higher than your estimate, IRD will have paid you more than you were entitled to and you'll need to repay the difference once your income is confirmed at year end, similar to how provisional tax squares up against your final tax bill.
Can both parents in a family each separately claim Working for Families?
No — Working for Families is assessed on combined family income and paid to one nominated caregiver per family, not claimed separately by each parent, even where both parents work and earn their own incomes.
Related Terms
IRD
Inland Revenue Department (IRD), commonly known as Inland Revenue or simply IRD, is the New Zealand government agency responsible for collecting taxes, distributing social support payments, and enforcing tax compliance.
IETC
The Independent Earner Tax Credit (IETC) provides a tax credit of up to $520 per year ($10 per week) for New Zealand tax residents earning between $24,000 and $70,000 who do not receive Working for Families tax credits, NZ Superannuation or a veteran's pension, or a main government benefit.
Child Support
Child support is a formula-based payment scheme administered by Inland Revenue under the Child Support Act 1991, requiring separated parents to contribute to the cost of raising their children based on income and care arrangements, rather than a court-set amount.
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