Shared care

With shared care arrangements there can be more than one principal caregiver.

Both parents of a dependent child can qualify as a principal caregiver in shared care cases expected to be for more than 4 months in duration, and be entitled to a proportional Best Start tax credit if:

• they are living apart and
• they are both qualifying persons and
• they care for the dependent child on average for at least one third of the time. Over a year this is at least 122 days or 5 days a fortnight.

If a child is under the care of each parent for more than one third of the parental entitlement period then Inland Revenue recognises the shared care arrangement, and each parent can be paid the appropriate portion of the Best Start tax credit payment.

For the Ministry of Social Development to pay Best Start tax credit payment in shared care cases, the client must have a formal agreement and supply a copy of either:

• the signed care agreement or
• the court order stating the arrangement

When one parent has care of the child for 2 days or less a week then they cannot get a proportional Best Start tax credit payment. In this situation the Best Start tax credit payment is to be paid to the caregiver with the majority of the care.

Note clients with an informal care agreement should be referred to Inland Revenue for Best Start tax credit payments.