Principal caregiver

Family tax credit is paid to the principal caregiver of a dependent child.

The definition of a principal caregiver for family 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 family tax credit, a principal caregiver is the person who:

• has 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
• a person who is the owner of or employed in:
  • a residence established under the Oranga Tamariki Act 1989
  • 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

Family tax credit is automatically paid in full to the primary client. When the partner of the primary client is the principal caregiver, family tax credit payments should be paid to the partner.

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