01/04/2026
✔A lot is changing from 1 April to Working for Families payments. The Working for Families package includes the Family tax credit, In-work tax credit, the Minimum family tax credit and the Best Start payment. If you receive any of these payments, here is what’s changing:
👉Family tax credit
The Family tax credit is the main payment for people who qualify for Working for Families. The income threshold for the Family tax credit will increase to $44,900, and the abatement rate will increase from 12 to 12.5 percent. This will mean that your payments will reduce faster the more you earn over the threshold.
👉In-work tax credit
This is for parents who receive some income from paid work, but the family income is below the threshold of $42,700. The income threshold for the In-work tax credit will increase to $44,900, and the abatement rate will increase from 12 to 12.5 percent. This will mean that your payments will reduce faster the more you earn over the threshold.
The Government is temporarily increasing the base rate of the In-work tax credit by $50 a week, taking it to $147.50 a week. This increase will run for one year or until the price of 91 octane petrol drops below $3 for four consecutive weeks, whichever comes first.
👉Minimum family tax credit
Minimum family tax credit payments ensure working families get a minimum level of income every week. The minimum Family Tax Credit threshold will increase to $36,604 after tax per year or $703 after tax per week. If you qualify, your income will be topped up to $703 per week after tax.
👉Best Start payment
If you have just had a baby and you are registered for Working for Families tax credits, you may be eligible to receive Best Start tax credits. Best Start tax credits are for up to the first three years of your baby's life. If your baby is born on or after April 1, the first year's payment will be income tested. If your family income is below $79,000 you will receive the full entitlement of $77 a week. If your family income is over $79,000 your entitlement will be reduced for every dollar you earn over $79,000 (up to $4,041).
For more information, visit cab.org.nz/article/KB00042178
Or contact us by calling our free CAB phone number 0800 367 222, by dropping in to see us at your local CAB (no appointment needed), or by contacting us via our CAB website at www.cab.org.nz.
[Image description: Yellow block with text and blue border, with the CAB logo
underneath. Text reads “How are my Working for Families payments changing from April 1?”]