What is the Family Tax Credit and how much can I receive per child?

The Family Tax Credit (FTC) is the main payment under New Zealand's Working for Families scheme. It provides a set amount per dependent child, with a higher rate for the eldest child.

Who is eligible:

• You are a New Zealand tax resident
• You have dependent children aged 18 or under (or 16-18 if not receiving a benefit or student allowance in their own right)
• You are the principal caregiver of the children
• Your family income is below the abatement threshold

Payment amounts (for the 2025 tax year, 1 April 2024 to 31 March 2025):

The Family Tax Credit provides a weekly amount for each dependent child. The eldest child receives a higher rate than subsequent children. Rates are adjusted annually on 1 April.

Income threshold and abatement:

• The full FTC is available if your annual family income is NZ$42,700 or less
• For every dollar of family income over NZ$42,700, your total Working for Families payments are reduced by 27 cents
• This abatement applies to all Working for Families credits combined (FTC, In-Work Tax Credit, and Best Start)

How payments are made:

• You can receive payments weekly or fortnightly from IRD throughout the year
• Alternatively, you can receive a lump sum at the end of the tax year after filing your tax return
• Payments are calculated based on your estimated annual family income

Important: At the end of the tax year, IRD will compare your actual income against your estimated income. If you received too much, you may need to repay the difference. If you received too little, you will get a top-up payment. Use the IRD online calculator to estimate your entitlement before applying.