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Working for Families Guide — Tax Credits for Families with Children in NZ

the Working for Families (WFF) tax credits in New Zealand. The guide covers the Family Tax Credit (FTC), the In-Work Tax Credit (IWTC), the Minimum Family Tax Credit (MFTC), and the Best Start tax credit, along with the income thresholds, the abatement rates, and how to apply through the IRD.

Working for Families Components

The Working for Families (WFF) tax credits provide financial support to families with children. The main components include: (a) the Family Tax Credit (FTC) — the base credit of $152 per week for the oldest child and $106 per week for each additional child (for the 2025-26 year), (b) the In-Work Tax Credit (IWTC) — up to $97.50 per week for the families with the children not receiving the main benefit (the criteria requires at least one parent working 20+ hours and the sole parent working 20+ hours), (c) the Minimum Family Tax Credit (MFTC) — the top-up to ensure the family income reaches $39,998 per year (the net income after the tax and the credits), and (d) the Best Start Tax Credit — $3,156 per year for the first year and $1,847 per year for the years 2 and 3 for the children born after 30 June 2018.

Income Abatement

The WFF tax credits are abated (reduced) when the family income exceeds $42,700 (for the 2025-26 year). The abatement rate is 27% for the FTC, the IWTC, and the Best Start credit. The WFF abatement is based on the "family scheme income" which includes the salary, the wages, the self-employed income, the rental income, the investment income, and the overseas income (but excludes the NZ Super and the student allowances). The families can apply for the WFF through the myIR account or by completing the FS1 form.