Family Assistance - Help For People with Children

Family Assistance is paid by the New Zealand government to families with children under 18. It is available to families on surprisingly high incomes and, for most families, is worth several thousand dollars per year.

Family Assistance is available immediately to migrants, provided your children have been granted permanent residence in New Zealand. You do not have to live in New Zealand for any pre-set time before you make a claim.

Family assistance has four parts and you may be entitled to one or more of these. We shall outline each below, starting with the In-Work Payment.

1. The In-work Tax Credit :
In-work tax credit is a payment made to people who are employed or self-employed. Couples must work 30 hours or more per week between them, and sole parents must normally work at least 20 hours per week to qualify. The In-work payment pays a maximum of $120 per fortnight to a family with one, two or three children. An extra $30 per fortnight is paid for the fourth and each subsequent child. In-Work payments are made on a sliding scale depending on family income. The payments fall as your income from other sources, such as employment, rise. The maximum income thresholds, below which you will qualify for a payment of some sort are:
  • One child $71,000
  • Two children $86,000
  • Three children $101,000
  • Four children $119,000
You can see the full payment scale on this pdf file. (Opens in new window.)

2. Family Tax Credit:
Family Tax Credits are payments made for each dependent child aged 18 or under. The amount you receive depends on your income, how many children you have, and their ages.

Anyone earning less than $35,000 per annum receives the maximum payment. You do not need to be in work to claim family tax credit payments. Payments falls on a sliding scale depending on your income. The maximum fortnightly payments available - for people earning less than $35,000 per annum are:
  • One child $164
  • Two children $278
  • Three children $392
  • Four children $506
  • Five children $620
  • Six children $734
For a family earning $50,000 per annum, fortnightly payments would be:
  • One child $37
  • Two children $151
  • Three children $265
  • Four children $379
  • Five children $493
  • Six children $607
These fortnightly payments are further increased if any of your children are over 13 years of age:
  • Add $16 for each child (other than the eldest) aged 13, 14 or 15
  • Add $26 if your eldest child is 16, 17 or 18
  • Add $56 for any other child aged 16, 17 or 18
You can see the full payment scale on this pdf file. (Opens in new window.)

3. Parental Tax Credit:
This is paid for the first eight weeks after the birth of your baby. Parental tax Credit is income tested and the maximum amount you can receive is a lump sum of $1,200. If the mother has been working, it is often more beneficial to apply for Paid Parental Leave.

4. Paid Parental Leave
Paid parental Leave is available when working mothers take parental leave from their job(s) to care for their newborn. For most people, paid parental leave is worth more than parental tax credit. You cannot receive paid parental leave payments and parental tax credit for the same child. If you meet the criteria for both payments you'll need to decide which payment you'd like to receive. The maximum Parental Leave payment is $372 per week for up to 14 weeks.

Further details of these payments can be found on the Inland Revenue Department and Working For Families websites.