What is the In-Work Tax Credit and can I get NZ$72.50 per week?

The In-Work Tax Credit (IWTC) is a payment under Working for Families designed to support families where at least one parent is in paid employment. It provides NZ$72.50 per week for families with up to three children.

Payment amounts:

• NZ$72.50 per week for families with 1 to 3 dependent children
• An additional NZ$15 per child per week for each child beyond the third
• For example, a family with 5 children receives NZ$72.50 + (2 x NZ$15) = NZ$102.50 per week

Eligibility requirements:

• You must normally work a minimum number of hours per week:
• Couples: at least 30 hours combined per week
• Sole parents: at least 20 hours per week
• You must not be receiving an income-tested benefit (such as Jobseeker Support or Sole Parent Support) or a student allowance
• You must have dependent children and meet the general Working for Families eligibility criteria

How it interacts with other credits:

• The IWTC is paid in addition to the Family Tax Credit
• It is subject to the same income abatement rules: payments reduce by 27 cents for every dollar of family income over NZ$42,700 per year
• The abatement applies to your combined Working for Families credits (FTC + IWTC + Best Start)

How to receive it:

The IWTC is included in your regular Working for Families payments from IRD. You do not need to apply for it separately. When you apply for Working for Families, IRD will assess your eligibility for all available credits including the IWTC.

Note: If you start receiving an income-tested benefit, you will stop receiving the IWTC. You should notify IRD of any changes to your employment status.