The Family Tax Credit (FTC) is the core component of Working for Families — a regular payment for families with dependent children, based on the number of children and your family income. It is available to most families with children, including beneficiary families.
The Family Tax Credit pays $128.43/week for one child, rising by approximately $91.87/week for each additional child. It begins to abate at 27 cents per dollar when family income exceeds $42,700. It is available to beneficiary families and working families alike (unlike the In-Work Tax Credit). Apply through myIR.
2025–26 FTC Rates
| Number of children | Weekly FTC | Annual FTC |
|---|---|---|
| 1 | $128.43 | $6,678 |
| 2 | $220.29 | $11,455 |
| 3 | $312.16 | $16,232 |
| 4 | $404.02 | $21,009 |
| 5 | $495.89 | $25,786 |
Each additional child adds approximately $91.87/week ($4,777/year).
Rates are adjusted annually — verify current rates at ird.govt.nz.
Eligibility
To receive the FTC:
- You must be the principal caregiver of a dependent child
- The child must be under 18 (or 18–19 if in full-time secondary schooling)
- You must be a NZ tax resident
- The child must live with you in NZ
Unlike the In-Work Tax Credit, the FTC is not restricted to working families — families receiving a main benefit (Jobseeker, Sole Parent Support) can still receive FTC.
Abatement
The FTC abates as family income rises:
- Abatement starts at: $42,700 family income per year
- Abatement rate: 27 cents per dollar above $42,700
Impact example:
| Family income | 1 child FTC before abatement | Abatement | FTC received |
|---|---|---|---|
| $30,000 | $6,678 | $0 | $6,678 |
| $42,700 | $6,678 | $0 | $6,678 |
| $55,000 | $6,678 | $3,321 | $3,357 |
| $65,000 | $6,678 | $6,021 | $657 |
| $70,000 | $6,678 | $7,371 | $0 |
For families with more children, abatement cuts in at the same threshold but takes longer to reduce to zero because the base entitlement is higher.
How FTC Is Paid
- Weekly or fortnightly: Based on estimated income. Reconciled at year end.
- Lump sum (end of year): Through your IR3 refund.
Most families on lower incomes prefer weekly/fortnightly payments for budgeting purposes.