There’s a genuinely confusing amount of government support out there for families, and most of it has a name that tells you nothing about what it actually does. If you’ve ever seen “Best Start” or “FamilyBoost” mentioned and thought “wait, is that the same thing as Working for Families?” – no, and you’re not alone. Here’s what’s actually available, and who to call for each one.
The two systems, in plain terms
There are two separate government agencies handing out family support, and they don’t do the same thing:
- Inland Revenue (IRD) runs Working for Families – tax credits that top up your income if you’re raising kids.
- Work and Income (MSD) runs the Childcare Subsidy – help specifically with the cost of pre-school childcare, paid directly to your childcare provider.
You can be eligible for both at once. They’re assessed separately, through separate agencies, with separate applications.
Working for Families (IRD)
Working for Families is a set of tax credits for anyone who’s the main caregiver of a dependent child under 18. It’s made up of a few different parts:
- Family Tax Credit – the main ongoing payment, based on how many kids you have and your family income.
- In-Work Tax Credit – extra support if you’re earning income from paid work.
- Best Start – a payment for children under three, with the first year available regardless of income and later years income-tested.
- Minimum Family Tax Credit – a top-up that guarantees a minimum after-tax income for lower-earning working families who meet the work-hours rules.
Payments reduce as your income rises past a certain threshold – this is called “abatement.” The exact cut-off depends on how many children you have and which credits apply, so the only reliable way to know your number is IRD’s own calculator, not a general estimate from any blog (including this one).
How to apply: through myIR. You’ll usually get a Notice of Entitlement from IRD each year.
Childcare Subsidy (Work and Income)
This one’s separate, and it’s specifically about the cost of pre-school childcare – it’s paid directly to your childcare provider, not to you.
- Normally covers up to 9 hours a week if you’re not working, studying, or training.
- Can cover up to 50 hours a week if you are working, studying, or on an approved training course.
- It’s income-tested – the lower your family income, the more support you’re likely to get.
- Your child generally needs to be attending an approved early childhood service for at least 3 hours a week.
There’s also a related subsidy – OSCAR – for before-school and after-school or school holiday programme costs for kids aged 5 to 13, assessed the same way.
How to apply: through Work and Income. Apply 3-4 weeks before you need it to start if you can, since there’s some processing time involved.
Don’t forget 20 Hours ECE
Separate again from both of the above: every child aged 3, 4, or 5 in NZ is entitled to up to 20 hours a week of free early childhood education, funded by the Ministry of Education, regardless of your income. If your child’s already at an ECE service offering this, you may not need the Childcare Subsidy for those same hours – the two don’t stack.
Quick reference
| Support | Who runs it | What it’s for | Income-tested? |
|---|---|---|---|
| Working for Families | IRD | General family income top-up | Yes |
| Childcare Subsidy | Work and Income | Pre-school childcare costs | Yes |
| 20 Hours ECE | Ministry of Education | Free early childhood education hours | No |
| OSCAR Subsidy | Work and Income | Before/after school & holiday programmes | Yes |
FAQ
Can I get both Working for Families and the Childcare Subsidy?
Yes – they’re separate entitlements assessed by different agencies, so being eligible for one doesn’t affect the other.
Do I need to reapply every year?
Working for Families is reassessed annually based on your income. The Childcare Subsidy needs updating whenever your circumstances change – new job, new hours, new income.
I’ve never applied for any of this – am I missing out?
Possibly. A lot of families qualify for more than they realise, especially after a change in income or a new baby. It costs nothing to check.
This isn’t financial advice, and the exact numbers change from year to year – always confirm your own entitlement through IRD’s Working for Families calculator or by calling Work and Income directly, since a general guide like this one can only point you in the right direction.