Work out a New Zealand family's Working for Families entitlement.
Use for: 'how much Working for Families will I get', 'what is my family tax
credit', 'do I qualify for the in-work tax credit', 'how much Best Start
will I get', 'will I lose Working for Families if I earn more'.
CORRECT A COMMON AND EXPENSIVE MISTAKE. There is NO hours test for the
In-Work Tax Credit and has not been one since 1 July 2020. Anyone with some
income from paid work each week, who is not on an income-tested benefit or
student allowance, qualifies. Many sources, including our own website page,
still repeat the old 20 hours sole parent / 30 hours couple rule. A parent
working fifteen hours a week is entitled to $7,670 this year and is often
told they are not.
ASK FOR THE COMBINED FAMILY INCOME, not one partner's. Everything abates
against it, so an answer from one income is wrong.
ASK HOW MANY CHILDREN ARE UNDER 3, not under 1. Best Start runs to the
third birthday and is worth $4,041 a year per child.
The In-Work Tax Credit is temporarily $7,670 a year until 31 March 2027,
then reverts to $5,070, so an answer about next year differs from this one.
Say which you have given.
Args:
children: Dependent children in the caregiver's care.
family_income: Combined gross annual family income, all sources.
children_under_3: How many are under 3, for Best Start.
iwtc_eligible: Some paid work and no income-tested benefit.
best_start_children_first_year_exempt: Under-3s in their first year
born BEFORE 1 April 2026, which are exempt from the income test.
iwtc_after_march_2027: Model the reverted $5,070 rate.
Returns:
FTC, IWTC and Best Start with each abatement shown separately, the
annual, weekly and fortnightly totals, an assumptions block naming
every rate used, and what the calculation excludes.