Guidance on FamilyBoost

FamilyBoost

FamilyBoost is a childcare payment scheme that takes effect from 1 July 2024 onwards, and is intended to support parents and caregivers of young children in managing childcare fees with a partial reimbursement.

Under the scheme, eligible households can get up to 25% of their weekly childcare fees reimbursed, to a maximum credit of $75 per week after the 20 Hours Free ECE and MSD’s Childcare Subsidy are taken into account. The credit is processed through Inland Revenue: parents can submit their ECE invoices directly through IR’s online system, myIR, and receive lump sum refunds from October 2024.

Family Boost can only be claimed if ECE childcare fees are incurred, i.e. if a childcare provider doesn’t charge any fees, then FamilyBoost cannot be claimed.

What do parents need to do?

• Be registered on myIR
• Check eligibility – household income is calculated on the most recent tax return filed and covering a three-month period. Beneficiaries who pay childcare costs are eligible to receive FamilyBoost.
• Collect ECE invoices and upload these on myIR (in jpeg or pdf format). Applications for FamilyBoost open on 1 October 2024 and can be made every three months.
• Families can only claim once in a three-month period. FamilyBoost is available on a per household basis rather than per child basis.

The child(ren) must live in the applicant’s household, i.e. if a grandparent pays for childcare then they can claim for it - but only if the child lives in the grandparent’s household.

Separated parents are considered separate households but cannot claim more than $75 pw maximum rebate in total.

What do centres need to do?

Provide invoices that contain all the information required to apply for FamilyBoost – IRD will provide more information following a consultation process with ECE providers.

Inland Revenue will provide ECE centres with content and guidance on FamilyBoost that centres can pass on to parents.

Source: FamilyBoost

Family Tax Credits

For families who currently do not pay fees, FamilyBoost does not apply.

However, these families may be able to access the Family Tax Credits, which was extended, effective 1 April 2023 as part of the Cost of Living Package introduced by the previous government. The Family Tax Credits, received by almost 60% of New Zealand families, was increased by $9 a week for the eldest child to $136 a week, and by $7 a week for subsequent children to $111 a week. Best Start was also lifted by $4 a week to $69 a week.

The raising of income thresholds resulted in 54 % of all New Zealand families with children being eligible for subsidised childcare assistance, i.e. parents of approximately 7,400 additional children receiving the Childcare Subsidy on average per month. The policy to increase the income threshold increased both the number of families eligible and the amount for many families already receiving it, as well as nearly every sole parent in New Zealand being eligible for childcare assistance.

Parents and families can apply through the MSD website. If parents don't already receive payments from MSD, they will need to complete the Childcare Assistance application form.

Source: Cost of Living Package

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