FamilyBoost Scheme Gets A Boost
From 1 July 2025, thousands more New Zealand families will benefit from increased financial support for early childhood education (ECE), as the Government rolls out major improvements to its FamilyBoost tax rebate scheme. The changes are designed to ease the burden of childcare costs and make the rebate more accessible to middle-income households.
What’s Changing?
1. Bigger Rebates
The portion of ECE fees that can be claimed back through FamilyBoost has jumped from 25% to 40%. That means families will receive a larger share of their out-of-pocket childcare costs back each quarter.
2. Higher Weekly Cap
The weekly rebate cap has increased from $75 to $120, equating to a maximum of $1,560 per quarter, or $6,240 annually.
3. Broader Income Eligibility
The income threshold has been raised. Families earning up to $229,100 a year (or $57,286 per quarter) are now eligible, up from the previous cap of $180,000. This change opens the door to an estimated 16,000 additional households.
4. Slower Abatement Rate
The abatement rate – the amount your rebate is reduced once your income exceeds a certain threshold – has dropped from 9.75% to 7% for income over $35,000 per quarter. This means your rebate phases out more gradually as income rises.
When and How to Claim
The new rules apply to ECE fees paid from 1 July to 30 September 2025.
Families can submit their claims from 1 October 2025, once the legislation has passed and Inland Revenue (IRD) systems are updated.
Claims are made through the myIR portal, and families must upload invoices from their childcare provider. While this system remains manual for now, IRD is working on a future upgrade to allow ECE centres to submit fee information directly—streamlining the process for parents.
Examples: How Much Could You Get?
A family paying $100/week in ECE fees will now get $40 back each week (up from $25), adding up to an extra $780 per year.
A couple earning $160,000 per year, with weekly childcare costs of $146, will see their rebate increase from $37 to $58/week.
A higher-income family at $220,000/year, previously ineligible, could now receive around $12/week.
These are real gains for households juggling the costs of work and childcare.
Important Notes
You must keep and submit quarterly invoices for reimbursement.
The rebate is refunded after the quarter ends—you pay up front and claim later.
The rebate doesn’t affect your Working for Families entitlements or other government assistance.
Why It Matters
The FamilyBoost update addresses two key concerns: improving affordability for working families, and ensuring government support reaches more households. Many eligible families had missed out under the old rules—either due to income limits or lack of awareness. These changes aim to make the rebate both more generous and more inclusive.
Government ministers have confirmed that the scheme is being revised in response to lower-than-expected uptake. Only 60,000 families had used FamilyBoost by mid-2025—well below projections. With additional funding available, the rebate expansion ensures more families benefit from unspent support.
What To Do Now
Final Word
This is welcome news for working parents across New Zealand. With childcare costs often the biggest line item in family budgets, the improved FamilyBoost rebate brings real, practical relief. By raising caps and expanding eligibility, the scheme is now better aligned with the realities faced by modern Kiwi households.
Whether you’re returning to work after parental leave, managing multiple kids in care, or navigating rising costs, FamilyBoost could help you hold onto more of your income—and focus more on your whānau.
What’s Changing?
1. Bigger Rebates
The portion of ECE fees that can be claimed back through FamilyBoost has jumped from 25% to 40%. That means families will receive a larger share of their out-of-pocket childcare costs back each quarter.
2. Higher Weekly Cap
The weekly rebate cap has increased from $75 to $120, equating to a maximum of $1,560 per quarter, or $6,240 annually.
3. Broader Income Eligibility
The income threshold has been raised. Families earning up to $229,100 a year (or $57,286 per quarter) are now eligible, up from the previous cap of $180,000. This change opens the door to an estimated 16,000 additional households.
4. Slower Abatement Rate
The abatement rate – the amount your rebate is reduced once your income exceeds a certain threshold – has dropped from 9.75% to 7% for income over $35,000 per quarter. This means your rebate phases out more gradually as income rises.
When and How to Claim
The new rules apply to ECE fees paid from 1 July to 30 September 2025.
Families can submit their claims from 1 October 2025, once the legislation has passed and Inland Revenue (IRD) systems are updated.
Claims are made through the myIR portal, and families must upload invoices from their childcare provider. While this system remains manual for now, IRD is working on a future upgrade to allow ECE centres to submit fee information directly—streamlining the process for parents.
Examples: How Much Could You Get?
A family paying $100/week in ECE fees will now get $40 back each week (up from $25), adding up to an extra $780 per year.
A couple earning $160,000 per year, with weekly childcare costs of $146, will see their rebate increase from $37 to $58/week.
A higher-income family at $220,000/year, previously ineligible, could now receive around $12/week.
These are real gains for households juggling the costs of work and childcare.
Important Notes
You must keep and submit quarterly invoices for reimbursement.
The rebate is refunded after the quarter ends—you pay up front and claim later.
The rebate doesn’t affect your Working for Families entitlements or other government assistance.
Why It Matters
The FamilyBoost update addresses two key concerns: improving affordability for working families, and ensuring government support reaches more households. Many eligible families had missed out under the old rules—either due to income limits or lack of awareness. These changes aim to make the rebate both more generous and more inclusive.
Government ministers have confirmed that the scheme is being revised in response to lower-than-expected uptake. Only 60,000 families had used FamilyBoost by mid-2025—well below projections. With additional funding available, the rebate expansion ensures more families benefit from unspent support.
What To Do Now
- Check if you’re eligible under the new income limit.
- Collect your childcare invoices for July–September 2025.
- Log in to myIR and be ready to submit your claim from 1 October.
- Watch for updates on automated claiming improvements coming in 2026.
Final Word
This is welcome news for working parents across New Zealand. With childcare costs often the biggest line item in family budgets, the improved FamilyBoost rebate brings real, practical relief. By raising caps and expanding eligibility, the scheme is now better aligned with the realities faced by modern Kiwi households.
Whether you’re returning to work after parental leave, managing multiple kids in care, or navigating rising costs, FamilyBoost could help you hold onto more of your income—and focus more on your whānau.
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