The four payments
| Payment | Full rate from 1 April 2026 | Key point |
|---|---|---|
| Family Tax Credit | $7,921 a year for the eldest ($152 a week); $6,454 for each other child ($124 a week) | Abates at 27.5% of family income above $44,900. Paid to most families, including those on a benefit. |
| In-Work Tax Credit | $147 a week ($7,670 a year), temporary | Needs paid work. Full amount if family income is $44,900 or less; the temporary $50 boost runs to 31 March 2027 or until 91 petrol is under $3 a litre for 4 weeks. |
| Best Start | $77 a week ($4,041 a year) | First 3 years of a child's life. Income-tested over $79,000 at 21%. |
| Minimum Family Tax Credit | Check IRD | A top-up for working families whose after-tax income is very low. Check the current amount at ird.govt.nz. |
Work and Income's own table shows the unrounded weekly Family Tax Credit equivalents ($151.91 and $123.78). Inland Revenue rounds down to whole dollars.
What happens to your payments when you lose your job
- Family Tax Credit: your family income falls, so you'll often get more. Tell Inland Revenue in myIR, or use the yearly review. If you start a main benefit, Work and Income can pay the Family Tax Credit with your benefit; you'll usually be switched across.
- In-Work Tax Credit: it needs income from paid work. You can keep it during an unpaid break of 2 weeks or less; tell IRD the start date through myIR to avoid an overpayment. Once you're out of work longer, it stops. Inland Revenue's page does not spell out the rule for main benefits, but in general a main benefit rules out the In-Work Tax Credit, so ask IRD for your situation.
- Best Start: not tied to your job; it's paid for the child's first three years and only income-tested from year two (and year one for babies born on or after 1 April 2026). If you were getting paid parental leave, Best Start starts after PPL ends.
- Unsupported Child's Benefit / Orphan's Benefit: weekly rates from 1 April 2026 are $301.53 (under 5), $303.62 (5 to 9), $327.16 (10 to 13) and $350.58 (14+). These are separate from Working for Families and are for caregivers raising a child who is not their own because the parents can't care for them.
Worked examples
- One child, family income $60,000 (before the job loss): abatement = (60,000 - 44,900) x 27.5% = $4,152.50. Family Tax Credit = 7,921 - 4,152.50 = about $3,768 a year (about $72 a week).
- Same family, income drops to $30,000 for the year: under $44,900, so the full $7,921 ($152 a week).
- Two children, one working at $44,900 or less: the full Family Tax Credit ($152 + $124) plus the In-Work Tax Credit of $147 a week, while it remains available.
- Baby born 1 June 2026, family income $83,500: Best Start is reduced by (83,500 - 79,000) x 21% = $945, leaving about $3,096 a year or $59 a week.
Doing it: register, update, and review
- Register or check eligibility at ird.govt.nz/working-for-families. You must be 16+, care for a dependent child and be the principal caregiver.
- Choose weekly, fortnightly, or a lump sum at year end. Weekly or fortnightly helps your cash flow after redundancy.
- Update IRD in myIR when your income, job, relationship or care arrangements change. Phone 0800 227 773 if you need help.
- If you receive a main benefit, Work and Income often pays the Family Tax Credit with your benefit. Confirm who is paying it so you don't get paid twice.
- At the end of the tax year, check IRD's assessment against what you got.
Sources
- IRD: Family tax credit (opens in a new tab)
- IRD: In-work tax credit (opens in a new tab)
- IRD: Best Start (opens in a new tab)
- IRD: Temporary increase to the in-work tax credit (opens in a new tab)
- Benefit rates from 1 April 2026 (Orphan's / Unsupported Child's) (opens in a new tab)
General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.