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Income Tax Act 2007

Tax credits paid in cash - FamilyBoost tax credits

MH 3: FamilyBoost tax credit

You could also call this:

“Help with childcare costs: get back some of the fees you pay for your kids”

You can get a FamilyBoost tax credit if you care for one or more children who are enrolled in a licensed early childhood service. You must also pay fees for this service and live in New Zealand.

You can get 25% of the fees you pay for the service, up to a maximum of $975. This is worked out each quarter.

If you earn more than $35,000 in that quarter, your credit might be less than $975. You can apply for a refund of your FamilyBoost tax credit under section 41C of the Tax Administration Act 1994 if you have filed your tax return on time.

Your partner must also have filed their tax return on time if you want to apply for a refund. If you or your partner are late filing your tax return, you can still apply for a refund once you have filed the outstanding return.

If you have a partner, they cannot also get a FamilyBoost tax credit for the same quarter, even if you both pay fees for the service. However, if you are separated from your partner, they might be able to get a FamilyBoost tax credit.

If you are entitled to a FamilyBoost tax credit and you die before applying for a refund, the person looking after your estate can apply for the refund for you. You can find out more about how your tax credit income is calculated under section MH 4.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS976041.

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Part M Tax credits paid in cash
FamilyBoost tax credits

MH 3FamilyBoost tax credit

  1. A natural person is entitled to a FamilyBoost tax credit for a tax credit quarter for the amount calculated under subsections (2) and (3) if, during that quarter, the person—

  2. is a caregiver of 1 or more children enrolled with a licensed early childhood service; and
    1. incurs licensed early childhood service fees for that child or children; and
      1. is resident in New Zealand.

        1. Subject to subsection (3), the FamilyBoost tax credit for a tax credit quarter is equal to 25% of the licensed early childhood service fees payable by the person for that quarter up to a maximum credit amount of $975.

        2. If the person’s tax credit income calculated under section MH 4 is greater than $35,000 for the tax credit quarter, the FamilyBoost tax credit for the tax credit quarter is the lesser of—

        3. the amount of the FamilyBoost tax credit determined under subsection (2); and
          1. $975 less the abatement amount.

            1. A person entitled to a FamilyBoost tax credit for a tax credit quarter may apply for a refund of that credit under section 41C of the Tax Administration Act 1994 if, subject to subsection (5),—

            2. the person has met their obligation to file a return of income by the due dates set out in section 37 of that Act; and
              1. the person’s spouse, civil union partner, or de facto partner (relationship partner), if applicable, has also met their obligation to file a return of income by the due dates set out in section 37 of that Act.

                1. If a person or their relationship partner has failed to meet their obligation to file a return of income by the due dates set out in section 37 of the Tax Administration Act 1994, the person may be treated as complying with that section for the purposes of subsection (4) once they have filed the outstanding return or returns that would enable the Commissioner to assess their tax credit income under section MH 4.

                2. If a person entitled to a FamilyBoost tax credit under subsection (1) has a relationship partner, the relationship partner is not also entitled to a FamilyBoost tax credit for the tax credit quarter, regardless of whether the licensed early childhood service fees are incurred by both the person and their relationship partner.

                3. Subsection (6) does not apply for a tax credit quarter if the person is separated from their relationship partner and does not have a relationship partner at the end of that quarter.

                4. Despite subsection (4), when a person entitled to a FamilyBoost tax credit dies before applying for a refund of that credit, the trustee of that person’s estate may apply for a refund of the FamilyBoost tax credit to which the deceased person was entitled under subsection (1) as if they were that person.

                Notes
                • Section MH 3: replaced (with effect on 1 July 2024), on , by section 111 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).