Working for Families (WFF) is New Zealand’s family tax credit programme, providing regular payments to families with dependent children. In the 2025–26 year, WFF provides up to several thousand dollars annually to eligible families. This guide covers who qualifies, how much you can receive, and how to apply.
Working for Families is available to families with dependent children under 18 (up to 19 if in full-time study). The main components are the Family Tax Credit, In-Work Tax Credit, Best Start, and Minimum Family Tax Credit. WFF abates (reduces) as family income rises — from $42,700 for most credits. Apply through myIR or IRD. Receive payments weekly or fortnightly, or as a lump sum after filing your IR3.
What Is Working for Families?
Working for Families is a set of tax credits for families with dependent children. It is administered by IRD and is not means-tested in a binary sense — instead, payment amounts abate gradually as family income increases.
WFF consists of four main credits:
| Credit | Purpose |
|---|---|
| Family Tax Credit (FTC) | Core payment based on number of children |
| In-Work Tax Credit (IWTC) | Extra payment for families meeting minimum work hours |
| Minimum Family Tax Credit (MFTC) | Tops up very low incomes to a minimum floor |
| Best Start Tax Credit | Payments in first three years of a child’s life |
Eligibility Requirements
To receive WFF:
- You must be the principal caregiver of a dependent child (under 18, or 18–19 if in full-time secondary school)
- You must be a NZ tax resident
- Your child must ordinarily reside with you in NZ
Both single parents and couples can qualify. For couples, both partners’ incomes are combined to assess WFF entitlements.
Income Thresholds and Abatement
WFF payments abate (reduce) as family income rises:
Family Tax Credit and In-Work Tax Credit abatement:
- Abatement starts at $42,700 family income
- Abatement rate: 27 cents per dollar earned above the threshold
- Each dollar of family income above $42,700 reduces your WFF entitlement by $0.27
Example:
- Family income: $60,000
- Income above threshold: $60,000 − $42,700 = $17,300
- Abatement: $17,300 × 27% = $4,671 reduction in WFF payments
At higher incomes, WFF abates to zero. Approximately:
- Single child family: WFF phases out around $80,000–$90,000 income
- Four children: WFF may continue to $120,000+ due to higher base entitlements
Family Tax Credit (FTC) Rates 2025–26
The FTC is the foundation payment — the amount depends on the number of dependent children:
| Children | Weekly FTC | Annual FTC |
|---|---|---|
| 1 child | $128.43 | $6,678 |
| 2 children | $220.29 | $11,455 |
| 3 children | $312.16 | $16,232 |
| 4 children | $404.02 | $21,009 |
Each additional child adds approximately $91.87/week.
Amounts are subject to annual adjustment — check IRD’s WFF page for current year rates.
In-Work Tax Credit (IWTC)
The IWTC is an additional payment for families where the parents work a minimum number of hours:
- Sole parents: 20+ hours per week
- Couples (with children): combined 30+ hours per week (each partner must work at least some hours)
IWTC amount 2025–26: Up to $72.50/week ($3,770/year) for families with 1–3 children. Slightly higher for 4+ children.
Families receiving a full main benefit (Jobseeker, Sole Parent Support) are not eligible for the IWTC.
Minimum Family Tax Credit (MFTC)
MFTC tops up the income of very low-earning working families. If your annual family income after tax is below approximately $33,540 (2025–26 threshold), MFTC tops up the difference.
Conditions:
- You must work minimum hours (same as IWTC)
- You must not be receiving a main benefit
The MFTC ensures a minimum after-tax income floor for working families with children.
Best Start Tax Credit
Best Start is available for children born or due on or after 1 July 2018:
| Period | Eligibility | Weekly rate |
|---|---|---|
| Child’s first year | All families | $71.00/week ($3,692/year) |
| Year 2 (ages 1–2) | Family income under $79,000 | $71.00/week (abates above $79,000) |
| Year 3 (ages 2–3) | Family income under $79,000 | $71.00/week (abates above $79,000) |
Best Start is paid on top of any other WFF entitlements.
How to Receive WFF
You can choose to receive WFF as:
- Regular payments (weekly or fortnightly) — based on your estimated annual income. At year end, IRD reconciles and you pay back any overpayment or receive any underpayment.
- Lump sum after year end — file your IR3 and receive the total annual entitlement as a refund.
Most families prefer regular payments for cash flow. If your income is variable, consider requesting conservative (lower) regular payments to avoid having to repay a large sum at year end.
Applying for WFF
Apply through:
- myIR (online at myir.ird.govt.nz) — fastest method
- Phone: 0800 227 773
You will need:
- Your IRD number and partner’s IRD number
- Details of your children (name, date of birth)
- Estimated family income for the year
- Bank account for payments
Ensure your partner is also registered with IRD and has a myIR account if relevant.
WFF and Overseas Income
WFF eligibility requires NZ tax residency. If you or your partner have overseas income, it is included in your family income for WFF assessment. Overseas income can affect both eligibility and payment amounts.
Frequently Asked Questions
Can self-employed people get Working for Families?
Yes. Self-employed parents are eligible. WFF is based on taxable income — your net business income (after expenses) is included in family income. Self-employed recipients typically receive WFF as a lump sum at year end through their IR3 filing.
Does my partner’s income affect my WFF?
Yes. For couples, the combined income of both partners is used to assess WFF. If one partner earns significantly more, this reduces the combined entitlement through the abatement calculation.
What if my income changes during the year?
If your income changes significantly, update IRD promptly to adjust your regular payments. Underpayment (because income was higher than estimated) results in a debt to IRD; overpayment (income lower than estimated) results in a catch-up payment.
Can I get WFF if I receive a benefit?
The Family Tax Credit is available to beneficiary families. However, the In-Work Tax Credit and Minimum Family Tax Credit are not available to those receiving main benefits. Best Start is available to all families regardless of benefit status.
Does Working for Families count as income for other purposes?
WFF payments are not included in your assessable income for income tax purposes. However, they may affect eligibility for other means-tested assistance.