Working for Families Tax Credits

Picture of a mother with her young son

Working for Families Tax Credits are for families with dependent children 18 or younger, to help with day-to-day living costs. All tax credits are paid to the principal child carer - the person who mainly looks after the child.

What types of tax credits are there?

You might qualify for one or more type of tax credit, depending on your circumstances: 

  • family tax credit - the most common payment, paid regardless of your source of income
  • in-work tax credit - paid to families who normally work a minimum number of hours each week
  • minimum family tax credit - paid to families who earn up to a certain amount (external link) per year before tax
  • parental tax credit - paid for the first 56 days (eight weeks) after your baby is born or adopted (first 70 days (10 weeks) for babies born on or after 1 April 2015).

Important:
If you're getting parental tax credit you can't also get paid parental leave (external link) for the same child. Paid parental leave is paid to eligible parents when they take parental leave from their job to care for their newborn or adopted child. If you're eligible for both payments, see Congratulations on your new baby (IR753) (external link) to help you choose between the two.

How much can you get?

The amount depends on:

  • how many children you support financially who are 18 or younger
  • your children's ages
  • any shared care arrangements
  • your family income (how much you and your spouse or partner earn)
  • the source of your family income eg salary or wages, business, student allowance or benefit
  • the number of hours you work each week.

You can:

How does this affect you?

Check out Real lives to see Phil and Anna's story - they're a young working couple with a two year old son, receiving Working for Families Tax Credits.

Want to know more?

Go to Working for Families Tax Credits (external link) to check if you qualify, to estimate how much you'll receive, and to apply online.

Go to the Working for Families website (external link) to find out more about the Working for Families package.

Print