Best Start is a Working for Families payment for families with a baby or young child, paid from birth until the child’s third birthday. The rules changed for babies born on or after 1 April 2026: their first year is now income-tested too.
Best Start pays up to $77 a week (up to $4,041 a year) per child until the child turns 3. For a baby born on or after 1 April 2026 the payment reduces for every dollar of family income over $79,000, from the first year. For a child born before 1 April 2026, the first year is paid in full whatever your income ($73 a week, rising to $77 from 1 April 2026), and years 2 and 3 are income-tested. You can't get Best Start and paid parental leave at the same time: Best Start starts after paid parental leave ends.
Best Start Payment Rates
| Year of the child’s life | Child born on or after 1 April 2026 | Child born before 1 April 2026 |
|---|---|---|
| 1st year | Up to $77 a week, reducing above $79,000 family income | $73 a week (up to $3,838), not income-tested; $77 a week from 1 April 2026 |
| 2nd year | Up to $77 a week, reducing above $79,000 | Same |
| 3rd year (until the 3rd birthday) | Up to $77 a week, reducing above $79,000 | Same |
IRD rounds weekly instalments down to the dollar. It doesn’t publish the reduction rate on its Best Start page; use IRD’s Working for Families calculator to estimate a reduced payment.
Who Is Eligible
- You’re aged 16 or over and the child’s principal caregiver
- The child is under 3 and lives with you
- You meet the Working for Families residency requirements
- Any type of income counts: salary or wages, self-employment, a main benefit, NZ Super or a student allowance don’t stop you getting Best Start (they’re included in family income for the income test)
Best Start and Paid Parental Leave
You can’t receive Best Start and paid parental leave at the same time. If you’re getting paid parental leave, Best Start for that child starts after your paid parental leave finishes, and runs until the child’s first birthday for the first year’s payments.
How to Apply
Best Start is usually set up when you register your baby’s birth. If it isn’t, you can apply in myIR under Working for Families. You can take it weekly or fortnightly during the year, or as a lump sum after the end of the tax year.
Frequently Asked Questions
Does Best Start apply to every child, or just the first?
Best Start applies to each eligible child under 3. If you have a second child, you can get Best Start for that child too, alongside any payments still running for an older child under 3.
We earn $120,000 combined. Do we get Best Start?
It depends when the child was born. For a child born before 1 April 2026 you get the full first year regardless of income; in years 2 and 3 your payment is reduced because your income is over $79,000. For a baby born on or after 1 April 2026 the reduction applies from the first year. IRD’s calculator will estimate the amount.
Can grandparents or other principal caregivers receive Best Start?
Yes. If you are the principal caregiver of a child (even if not the biological parent), you may be eligible.
Source: Inland Revenue, “Best Start tax credit” and “Government payments that affect your Working for Families” (ird.govt.nz, checked 30 September 2026).