How to get help with the costs of childcare – Everything you need to know about the WINZ Childcare Subsidy, FamilyBoost and a range of other subsidies and payments
The WINZ childcare subsidy and FamilyBoost tax rebate through the IRD are both explained below.
News Flash: Childcare Subsidy Rates have increased from 1 April 2025. See below for the new rates and changes to household income thresholds for families to qualify for the subsidy.
But first, we’ll tell you about some other less well known subsidies and tax credits.
Contents
- Early learning payment
- Best Start tax credit
- Guaranteed childcare assistance payment (parents under 20 years)
- Flexible childcare assistance (to help with a babysitter or informal childcare costs)
- FamilyBoost
- WINZ Childcare subsidy
1. Early Learning payment
Families getting the Early Learning Payment because their child is enrolled in a Family Start or Early Start programme and aged 18 months to 3 years, are not eligible to receive the Childcare Subsidy for the same hours. If you’re enrolled in a Family Start or Early Start programme, you’ll be assigned a family/whānau worker who will contact WINZ for you (you may need to remind the worker). Contact WINZ for information on the current payment rates.
2. Best Start tax credit
The Best Start credit is paid to all families until their baby turns one, provided they are not receiving paid parental leave. If you’re getting a Work and Income benefit, MSD will pay you the Best Start tax credit with your payments. You’ll need to apply through IR if you don’t get a benefit from Work and Income. Read more: Eligibility and how to apply for the Best Start tax credit
3. Guaranteed Childcare Assistance Payment
Parents under 20 and in full-time education, or work-based training may get the Guaranteed Childcare Assistance Payment (GCAP) to assist with the cost of childcare fees at a licensed ECE service. GCAP covers the actual childcare service fees, up to $6.38 an hour or $319.00 per week (from 1 April 2024 – this wasn’t increased by the government in 2025). It is usually paid straight to the early childhood service who must deduct the payment from the fees it charges the eligible parent. GCAP application form
4. Flexible childcare assistance
This is available to contribute to the costs of having someone care for your child (such as a nanny) for 3 or more hours a week because you are working, studying or training for employment. If you get Flexible Childcare Assistance, you can still apply for the Childcare subsidy when you use a licensed ECE service. See full details: Flexible Childcare Assistance
5. FamilyBoost
The purpose of the FamilyBoost childcare payment, or tax rebate as it is known, is to help parents meet the cost of childcare/ECE fees. Payments are based on invoices.
Households can be reimbursed up to 25 percent of their ECE fees incurred after the 20 Hours Free ECE and MSD/Work and Income Childcare Subsidy have been taken into account. This is up to a maximum amount of $75 per week. The maximum entitlement is $975 each quarter. If you earn more than $35,000 in a quarter, the amount you can claim slowly reduces until your income reaches $45,000. Read more: How to claim your FamilyBoost payment
The IRD assesses claims for fees paid during each quarter using the invoices a parent submits in making their claim.
- January to March
- April to June
- July to September
- October to December
This means you may be eligible in one quarter but not in the next depending on amount paid in ECE fees and your income. Debt should not be incurred by families and there will be no ‘squaring-up’ process when IR is assessing annual tax returns, because refunds are final on submission of invoices and not adjusted if more recent family income information becomes available.
Rules for Early Childhood Services
- Services must provide families with an invoice or statement showing the fees payable for the hours that their child has attended. The invoice or statement must comply with the IRD requirements.
- No early childhood service is permitted to charge parents a higher fee because of FamilyBoost.
- Parents can submit an invoice to Inland Revenue before they have paid it. No early childhood service can legally stop a parent from submitting their invoices. Early childhood services must not withhold invoices to improve their collection of fees.
6. WINZ Childcare Subsidy
The Work and Income Childcare subsidy is the main form of financial assistance available to help New Zealand families pay the cost of fees to a licensed ECE service. The childcare subsidy is available for children who attend a licensed early childhood service for 3 or more hours a week.
Parents not in paid employment, studying or training may be eligible for a WINZ Childcare Subsidy for up to 9 hours a week.
Parents in paid employment, in training, are seriously ill or disabled, caring for a child in hospital, or caring for a child for whom they get a disability allowance for may be eligible for the subsidy for up to 50 hours a week.
The WINZ subsidy is only available to families for children under 5 years of age. But it may be extended beyond the 5th birthday if the school has advised that it will not allow the child to start until the beginning of the term straight after the fifth birthday.
Children who receive a Child Disability Allowance can continue receiving the WINZ Childcare Subsidy until 6 years if staying in early childhood education beyond the fifth birthday.
If the ECE service receives 20 Hours ECE funding scheme for the child, then the child’s parents/caregivers cannot get the Childcare Subsidy for the first 20 hours. Parents/ caregivers can choose to ask their ECE service not to claim the 20-Hours ECE so that they can instead claim the WINZ Childcare subsidy.
WINZ stops the payments when the ECE service closes for Christmas holidays.
Childcare Subsidy Rates
Below are the childcare subsidy rates. These are the latest rates and the rates apply from 1 April 2025 (the household income threshold and rate amounts before the increase in April 2025 are included in brackets so you can see by how much the rates have increased in the last year)
| Number of children | Gross weekly total household income before tax | Hourly rate per child | Weekly rate per child for 50 hours |
| One child | Less than $1,099 (Less than $1,062) | $6.52 (was $6.38) | $326 (was $319.00) |
| One child | $1,099 to $2,001.99 (1,062 to $1,933.99) | $5.20 (was $5.09) | $260 (was $254.50) |
| One child | $2,002 to $2,168.99 ($1,934 to $2,094.99) | $3.64 (was $3.56) | $182 (was $178.00) |
| One child | $2,169 to $2,335.99 ($2,095 to $2,256.99) | $2.03 (was $1.99) | $101.50 (was $99.50) |
| One child | $2,336 or more ($2,257 or more) | Nil | Nil |
| Two children | Less than $1,264 | $6.52 | $326.00 |
| Two children | $1,264 to $2,302.99 | $5.20 | $260.00 |
| Two children | $2,303 to $2,484.99 | $3.64 | $182.00 |
| Two children | $2,485 to $2,669.99 | $2.03 | $101.50 |
| Two children | $2,670 or more | Nil | Nil |
| Three or more | Less than $1,416 | $6.52 | $326.00 |
| Three or more | $1,416 to $2,568.99 | $5.20 | $260.00 |
| Three or more | $2,569 to $2,786.99 | $3.64 | $182.00 |
| Three or more | $2,787 to $3,003.99 | $2.03 | $101.50 |
| Three or more | $3,004 or more | Nil | Nil |
Try to apply before you need the Childcare Subsidy
It is recommended that parents/ caregivers apply for the subsidy at least 3 weeks before needed. Allow time for the ECE service manager or owner to complete a section of the application form.
The Ministry of Social Development operates an online application process. This may be an issue for families without reliable internet connection, literacy skills, or with English as a second language. If you know a family in this situation offer support and suggest they request the assistance of their ECE service to undertake the application process. Download and print a copy of the Application form.
Change of Circumstances
Should a parent (including partner) have a change of circumstances that may affect payment, change of hours of childcare, etc. then notify the Ministry of Social Development of the change of circumstance. Download and print a copy of the Change of Circumstances form.
How to Contact Work & Income at the Ministry for Social Development
Parents/ Caregivers
Phone 0800 559 009
ECE Service Owners and Managers
Use the following number or email address for queries about subsidies or payments, or to let MSD know about changes for the service (e.g., closures) or for a child.
Phone 0800 776 843
Email [email protected]
WINZ phone/office opening hours: Monday to Friday, 8am – 5pm
16 Responses
Is there to be a change to the Childcare Subsidy Rate from 1 April 2024?
The rates aren’t out yet. But it is expected that the rates will increase due to an annual general adjustment.
Do you know if WINZ will automatically apply these increases for those already receiving the subsidy?
We assume so – from 1 April 2024
What happens if the entitlement per week based on the household income is more than the discounted fee from the ECE centre? There will be no fees?
The subsidy then covers the fees – so then you should have nothing to pay. The centre may have other charges that are not technically ‘fees’ that you may be asked to pay e.g. money for trips/excursions
Hiya I want to know will WINZ automatically apply these rates changes for those already receiving subsidy?
Yes that should happen
MSD are claiming they do not pay the childare subsidy on top of the 20 horus ECE. My 3 year old daughter attends 40 hours per week of which 20 hours is covered by ECE. We are entitled to 9 hours childcare subsidy since I work and my partner is at home. The 9 hours should be paid on the 20 hours not covered by ECE. This is as per thier website. Can you confirm im correct I’m really worried they are turning people away with incorrect information. I am certain I am correct.
did you ever get an answer to this I am not working either ( partner is )and was told that I wasn’t entitled to the 9 hours that it was one or the other 20 free hours or the 9 hours not both
It’s long been a thing that if a child is on 20-Hours ECE then the childcare subsidy won’t apply for any hours that are claimed as part of 20 hours – as Tracey says on this comment thread “it was one or the other 20 hours or the 9 hours or both”. We’ve put a question into MSD regarding being enrolled more than 20 hours and parents working, and then asked again, and am still waiting for a reply. MSD really, really need to get it sorted.
Received a reply from the MSD today – the MSD reply was: “Dependant on the clients circumstances will depend if they can still receive 9 hours funding.
If both the clients/parents activity is under 20 hours then no subsidy will be payable.
If their activity is over 20 hours then they can receive funding for how many hours their activity is.”
So it sounds like if you can prove you work for more than 20 hours then you can get the subsidy on top of the 20 hours. Suggest you copy this reply, and talk again with the MSD. Let us know how you get on.
Key part of your messege is that your partner is at home – so there would be no requirement to get that extra 9 hours paid for. Even tho the 20 hours is free your child is still at kindy do 20 hours. So the extra 9 hours (which would be used to have a break from the kids/look for work/fill obligations if you have any) would be considered unnecessary as your child is already in kindy (supplying your stay at home partner with his break/looking for work/obligations) winz would consider your partner being then fully able to watch your child while you work. If yous were both working over 20 hours then you would get your 20 free ece topped up most likely to the extra 20 hours she is in kindy.
I would like to have the answer to the question that Matthew asked
Why would you need any additional subsidy, when your partner is at home? You can’t have both, you choose one or the other. I studied full time and my partner worked 40 hours, the subsidy covered more of the fees for us. I wasn’t eligible for the subsidy between the Christmas study break, as they expected me to work for the 10 weeks or at least be able to look after my kid.
Just an inquiry.
Would I need to add childcare subsidy amount onto my TIA course related cost application.
I am applying for childcare subsidy & TIA (training incentive allowance) seperately?