Principal caregiver

Best Start tax credit is paid to the principal caregiver of the dependent child.

The definition of a principal caregiver for Best Start tax credit is defined under the Income Tax Act 2007. This is different to the definition of principal caregiver used for other payments made by the Ministry of Social Development.

For Best Start tax credit, a principal caregiver is the person who:

• has the primary responsibility for the day-to-day care of the child, not on a temporary basis

The principal caregiver cannot be:

• a group of people (whether incorporated or unincorporated) or
• the partner of a transitional resident under the Income Tax Act 2007 or
• any person who is the owner or employed in:
  • a residence established under the Oranga Tamariki Act 1989 or
  • a residential disability care institution under the Health and Disability Services (Safety) Act 2001 or
  • any other institution where a child is being cared for

Best Start tax credit is automatically paid to the primary client. When the partner of the primary client is the principal caregiver, the Best Start tax credit payments should be paid to the partner.

In a sole parent family, Best Start tax credit is paid in full to the parent who has the most day-to-day care of the child or children.

Note some clients getting Orphans Benefit or Unsupported Childs Benefit as principal temporary caregivers may still meet the qualifications for Best Start tax credit. These clients will need to contact Inland Revenue to check they qualify before Best Start tax credit can be paid.