July 17, 2024

What is the Best Start Tax Credit?

The Best Start tax credit is paid weekly to families with new born babies, regardless of employment status and income. It is available for one year, minus the number of weeks of paid parental leave taken by the parents. During this time, families can expect to receive up to $700. However, the tax credit is not paid in full every week.

The Best Start tax credit is a new component of the Working for Families Tax Credits. The credit provides financial support for the first three years of a child’s life. It is available to all families for up to $3,120 per year for one child. The payment is tax-free for low and middle-income families, and abated at 21 percent for those who earn more than $79,000 a year.

Best Start payments start as soon as your application is approved. This normally takes approximately three weeks. If you want to continue receiving Best Start payments in the future, you must apply each year. The program does not automatically continue after the first year, and you must confirm your details every 11 months. The best time to apply for Best Start is when your child is under 12 months old.

Best Start is a government program that pays new parents an extra $60 per week. The money is available to families of any income, but it is not available to families on paid parental leave. If you are eligible, your family can receive Best Start payments until your child reaches the age of three if they make under $93,858.

The Best Start Tax Credit is paid to approximately 74,000 families annually. The money is paid by the Inland Revenue and MSD. For some families, it is the main benefit. It pays new parents the extra cash they need to raise their children. If you are planning on applying for this benefit, you can find out more here.

Best Start will pay you $60 a week for the first year. Eligibility depends on your household income and whether you are the primary caregiver. If you are married or single, you cannot combine the Best Start tax credit with the parental tax credit. You must be a New Zealand resident to claim Best Start.