Childcare Assistance: Childcare Subsidy, FamilyBoost, and Other Financial Support for Parents
CONTENTS
- Childcare subsidy
- FamilyBoost tax credit (IRD)
- Early learning payment – if your child is enrolled in a Family Start programme
- Best Start tax credit until baby’s 1st birthday
- Guaranteed childcare assistance payment (parents under 20 years)
- Flexible childcare assistance (to help with a babysitter or informal childcare costs)
1. Childcare Subsidy (Work and Income: MSD)
The Childcare Subsidy helps with the cost of early childhood education and is paid directly to your ECE service. The service must deduct the full subsidy amount from your fees, so it’s important to know how much you’re entitled to and check that it’s being applied correctly.
Who can get it
To receive the Childcare Subsidy, your child must attend a licensed early childhood service for at least 3 hours a week, and you must meet the income and residency criteria. If you’re unsure whether your service is licensed, you can check the national register of licensed ECE services. The subsidy is available for children who are:
- Under 6 if you receive the Child Disability Allowance.
- Under 5, or
- Over 5 but waiting for a cohort‑entry school start, or
How many hours you may receive
The number of hours depends on your situation:
- Up to 50 hours a week if you are working, studying, in training, seriously ill or disabled, caring for a child in hospital, or caring for a child who receives the Child Disability Allowance.
- Up to 9 hours a week if you’re not in paid work, study, or training.
If the ECE service receives 20 Hours ECE funding from the Ministry of Education 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 20-Hours ECE funding for their child so that they can instead receive the Childcare subsidy.
Childcare Subsidy Rates
The table below shows the updated Childcare Subsidy rates that apply from 1 April 2026. The amounts in brackets show the previous year’s rates, so you can easily see how much each rate has increased after the annual adjustment.
One Child
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,131 (was less than $1,099) | $6.72 (was $6.52) | $336 (was $326) |
| $1,131 to $2,059.99 (was $1,099 to $2,001.99) | $5.36 (was $5.20) | $268 (was $260) |
| $2,060 to $2,231.99 (was $2,002 to $2,168.99) | $3.75 (was $3.64) | $187.50 (was $182) |
| $2,232 to $2,403.99 (was $2,169 to $2,335.99) | $2.09 (was $2.03) | $104.50 (was $101.50) |
| $2,404 or more (was $2,336 or more) | Nil | Nil |
Two Children
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,301 (was less than $1,264) | $6.72 | $336 |
| $1,301 to $2,369.99 (was $1,264 to $2,302.99) | $5.36 | $268 |
| $2,370 to $2,556.99 (was $2,303 to $2,484.99) | $3.75 | $187.50 |
| $2,557 to $2,747.99 (was $2,485 to $2,669.99) | $2.09 | $104.50 |
| $2,748 or more $2,670 or more | Nil | Nil |
Three Children
| Household income (weekly, before tax) | Hourly rate | Weekly rate (50 hours) |
| Less than $1,457 (was less than $1,416) | $6.72 | $336 |
| $1,457 to $2,643.99 (was $1,416 to $2,568.99) | $5.36 | $268 |
| $2,644 to $2,867.99 (was $2,569 to $2,786.99) | $3.75 | $187.50 |
| $2,868 to $3,090.99 (was $2,787 to $3,003.99) | $2.09 | $104.50 |
| $3,091 or more (was $3,004 or more) | Nil | Nil |
It’s a good idea to apply for the Childcare Subsidy before your child starts in ECE
It is recommended that parents/ caregivers apply for the subsidy at least 3 weeks before needed. Allow time for the ECE service to complete a section of the application form. 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 (MSD)
Parents/ Caregivers: Phone 0800 559 009. WINZ phone/office opening hours: Monday to Friday, 8am – 5pm.
ECE Service Owners and Managers: Phone 0800 776 843. Email childcareproviders@msd.govt.nz
2. FamilyBoost
FamilyBoost is a tax rebate, provided through IRD, to reimburse parents for at least some of the cost of childcare/ECE fees. The amount of the rebate is linked to household income. You may be able to get FamilyBoost if:
- you are the caregiver of a child or children aged 5 and under
- you have household income of less than $57,286 a quarter (or less than $45,000 for quarters before 1 July 2025)
- you have costs from a licensed early childhood education (ECE) provider
- you are a tax resident of New Zealand.
If your household income in a quarter (4 month period) is under $35,000, you can claim up to 40% of your ECE costs – up to $1,560 for that quarter. If your household income in a quarter is over $35,000 but under $57,286, your FamilyBoost payment will be the lesser of:
- 40% of the ECE fees you have claimed
- the maximum amount ($1,560) less 7 cents for each dollar you earn over $35,000.
You can only claim FamilyBoost for the childcare fees you pay, this includes charges for optional fees, nappies, excursions, and food. It does not include donations. It also does not include any subsidies that are paid direct to the ECE service, such as 20 Hours ECE paid by the Ministry of Education and the Childcare Subsidy paid by Work and Income (MSD). Read more: How to claim your FamilyBoost payment
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.
- 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.
- While it’s not a rule, ethically an early childhood service should not charge any family a higher fee because they are claiming the FamilyBoost rebate.
3. 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.
4. 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. Learn more: Eligibility and how to apply for the Best Start tax credit
5. 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. Learn more: Guaranteed Childcare Assistance Payment.
6. 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. Learn more: Flexible Childcare Assistance
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?