Working for Families in NZ
If you’re a parent or caregiver in New Zealand, you might be eligible for financial support through the Working for Families (WfF) scheme. This initiative is designed to assist families with the costs of raising children, making it easier to work and care for your family. Understanding the ins and outs of WfF can help you determine if you qualify and how to apply.
What Is Working for Families?
Introduced in 2005, Working for Families is a government programme that provides financial assistance to families with dependent children aged 18 or under. The aim is to support working families and reduce child poverty by supplementing household income.
Who Qualifies for Working for Families?
To be eligible for WfF, you must:
- Be aged 16 years or older.
- Be the principal caregiver of at least one dependent child under 18.
- Be a New Zealand tax resident living in New Zealand.
- Care for the child on more than a temporary basis.
- Not be receiving a main benefit from Work and Income.
If you’re a separated parent, you may still qualify if you have exclusive care of your child for at least one-third of a four-month period.
Types of Working for Families Payments
There are several components to the WfF package:
- Family Tax Credit (FTC): A payment for each dependent child. The amount depends on your annual family income and the number and age of your children.
- In-Work Tax Credit (IWTC): Available to working families only.
- Minimum Family Tax Credit (MFTC): Ensures that your after-tax income doesn’t fall below a set minimum.
- Best Start Tax Credit (BSTC): A payment to assist with the costs of a new baby.
Each component has specific eligibility criteria and payment amounts. For detailed information, refer to the Inland Revenue website.
How to apply for Working for Families
Applications for WfF are processed through Inland Revenue. You can apply online via myIR. The application will require details about your income, family situation, and residency status.
It’s important to update Inland Revenue with any changes in your family circumstances to ensure you receive the correct amount of WfF payments.
How an Accountant Can Help
Navigating the complexities of WfF can be challenging. An accountant can assist by:
- Determining your eligibility for various WfF components.
- Calculating potential entitlements based on your income and family circumstances.
- Assisting with the application process to ensure accuracy and completeness.
Providing advice on how to maximise your entitlements.
Contact the team at Drumm Nevatt today for expert accounting advice and assistance.
Frequently Asked Questions (FAQs)
A government initiative providing financial assistance to families with dependent children to help with the costs of raising a family.
Eligibility is based on your annual family income, the number and age of your children, and whether you meet other criteria. For detailed information, refer to the Inland Revenue website.
A payment from Inland Revenue to help families with the cost of raising children. There are different types of tax credits, including the Family Tax Credit, In-Work Tax Credit, Minimum Family Tax Credit, and Best Start Tax Credit.
The scheme provides financial assistance based on your family income and circumstances. Payments are made through Inland Revenue and can be received weekly, fortnightly, or annually.
The amount varies depending on your income, the number and age of your children, and the specific tax credits you qualify for.
Refer to the Working for Families Calculator on the Inland Revenue website to estimate your entitlement.
Families with dependent children aged 18 or under who meet the residency and income criteria and are not receiving a main benefit from Work and Income.
To qualify for Working for Families, you need to have a dependent child living with you for at least a third of a 4-month period of time.
Dependent child – definition
A dependent child is a child in your care who is:
- aged 15 years or younger
- aged 16 or 17 years and depends on you financially
- aged 18 years, financially dependent on you and still at school or a tertiary institution (like a university or polytechnic)
- not married, in a civil union or de facto relationship.
Yes, if you meet the eligibility criteria and are not receiving a main benefit from Work and Income.
No, it’s a tax credit designed to assist with the costs of raising children.
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