Working for Families (WFF) is New Zealand’s main family tax credit programme, providing weekly or fortnightly payments to families with dependent children. It’s one of the most significant sources of financial support available to low and middle-income NZ families, yet many families either don’t realise they qualify, underestimate how much they’re entitled to, or unknowingly build up overpayments that IRD later recovers.
Who Qualifies for Working for Families?
You can get Working for Families if you’re aged 16 or over, you’re the principal caregiver of a dependent child, and you meet the residency requirements. A dependent child is aged 15 or younger, or 16 or 17 and financially dependent on you, or 18, financially dependent on you and still at school or in tertiary study.
The family tax credit and in-work tax credit start to reduce once family income is over $44,900, but many families earning well above that still get part of them.
The in-work tax credit has no minimum hours test since 1 July 2020: you qualify as long as you earn income from paid work (a salary or wage, self-employment, or as a shareholder-employee) and don’t get a main benefit. The minimum family tax credit does have an hours test: 20 hours a week for a sole parent, 30 between a couple.
How WFF Payments Are Made
You can receive WFF payments as:
- Weekly or fortnightly payments through IRD during the year, based on your estimated family income
- A lump sum after the end of the tax year (31 March), worked out from your actual family income and shown on your income tax assessment
Most families prefer the regular payments for cash flow. A lump sum can’t create an overpayment, because IRD uses your actual income.
The Overpayment Problem
IRD calculates WFF entitlements based on your total annual family income. If you receive weekly payments based on an estimated income, but your actual income turns out higher, IRD will recover the overpayment, sometimes years later. This catches many families off guard, particularly those whose income rises during the year (bonuses, overtime, secondary income). Using a conservative income estimate when setting up payments reduces this risk.
The Abatement Rate
Above $44,900 of family income, each extra dollar reduces your family tax credit by 27.5 cents; once the family tax credit reaches zero, any remaining abatement comes off the in-work tax credit. For families in that range this works like an extra 27.5% marginal rate on top of income tax and the ACC levy, which matters when weighing overtime, a second job or a pay rise.
WFF At a Glance
Full amounts for 1 April 2026 to 31 March 2027:
| Credit | Who can get it | Full amount |
|---|---|---|
| Family tax credit | Families with dependent children, including on a main benefit | $7,921 a year for the eldest child, $6,454 for each other child |
| In-work tax credit | Families earning income from paid work, not on a main benefit | $147 a week ($7,670 a year) for 1 to 3 children, plus $780 a year for each child after that |
| Minimum family tax credit | Working families on low incomes, not on a main benefit | Tops income up to $36,604 a year after tax |
| Best Start | Families with a child under 3 | Up to $77 a week ($4,041 a year), reducing above $79,000 family income |
| Abatement | Family tax credit, then in-work tax credit | 27.5% of family income over $44,900 |
The in-work tax credit is temporarily $147 a week for 1 April 2026 to 31 March 2027; IRD says it returns to $97 a week after 31 March 2027, and may drop back sooner if petrol falls below $3 a litre for four weeks.
Guides in This Section
- Working for Families Overview: eligibility, income thresholds, and how to apply
- Family Tax Credit (FTC): the core WFF payment based on number of children
- In-Work Tax Credit (IWTC): extra payment for families earning income from paid work
- Minimum Family Tax Credit (MFTC): tops up low incomes to a minimum after-tax amount
- Best Start Tax Credit: payments in the first three years of a child’s life
- WFF Abatement: How Income Reduces Your Credits: the threshold, the rate, and avoiding overpayments
Source: Inland Revenue Working for Families pages (family tax credit, in-work tax credit, minimum family tax credit, Best Start, dependent child, government payments), checked 30 September 2026.