Working for Families Calculator

Working for Families (WFF) is a government assistance programme for families with dependent children in New Zealand. It is made up of four tax credits: the Family Tax Credit (the main payment based on number and ages of children), the In-Work Tax Credit (for families in paid employment), the Minimum Family Tax Credit (to ensure working families reach a minimum income), and the Best Start payment (for newborns and children up to age 3). WFF is administered by Inland Revenue and can be received as a weekly or fortnightly payment throughout the year, or as a lump sum after the end of the tax year. To be eligible, you must be a New Zealand resident, have at least one dependent child under 18 living with you, and meet the relevant income thresholds. WFF entitlements begin to abate (reduce) once your family income exceeds $42,700 per year. Source: IRD — Working for Families (ird.govt.nz/working-for-families).

For the 2026-27 tax year (1 April 2025 to 31 March 2026), the Family Tax Credit (FTC) rates are $136.37 per week for the eldest or only child, and $111.04 per week for each subsequent child aged under 16. For children aged 16 and 17, the rate is $136.37 per week (matching the eldest child rate regardless of birth order). These amounts represent the maximum entitlement before any income abatement. The FTC begins abating at a rate of 27 cents per dollar of family income above $42,700, meaning higher-income families receive progressively less. For a family earning $60,000 with one child, the abatement would reduce the FTC by ($60,000 - $42,700) * 27% = approximately $4,671 per year. The FTC is available to both working and non-working families, unlike the In-Work Tax Credit which requires employment. Rates are reviewed annually. Source: IRD — Family Tax Credit (ird.govt.nz/working-for-families).

Working for Families (WFF) tax credits begin to reduce once your annual family income exceeds $42,700. The abatement rate is 27 cents for every dollar earned above this threshold. This means for every $1,000 of income above $42,700, your WFF entitlement reduces by $270. The abatement applies to the combined income of both partners in a couple, or to the sole parent's income in a sole-parent family. All four WFF components (Family Tax Credit, In-Work Tax Credit, Minimum Family Tax Credit, and Best Start) are subject to abatement, though they phase out at different rates. Once family income reaches a certain level — depending on family size and number of children — WFF entitlements reduce to zero. Families can choose to receive WFF as weekly instalments (with entitlement estimated throughout the year) or as a lump-sum payment after filing their annual tax return to get the exact amount. Source: IRD — Working for Families Abatement (ird.govt.nz/working-for-families).

Best Start is a WFF payment for families with a newborn child, designed to support families during the early years. In the first year of a child's life, Best Start pays $73 per week regardless of family income — all eligible families receive this payment whether they earn $20,000 or $200,000. From the child's first birthday until their third birthday, Best Start becomes income-tested: families with income under $42,700 continue to receive the full $73 per week, while higher-income families have the payment reduced or eliminated through abatement. Best Start can be paid weekly or fortnightly throughout the year, or as a lump sum after year-end. You cannot receive Best Start and Paid Parental Leave at the same time — you can only claim one or the other for the same child. Best Start is available for children born on or after 1 July 2018. Source: IRD — Best Start (ird.govt.nz/working-for-families).