Minimum family tax credit

For Income Related Rent purposes, the minimum family tax credit applicable people are entitled to get is included as assessable income.

Minimum family tax credit is a payment made to families with dependent children aged 18 or younger, so they have a minimum income each week after tax.

Generally, the assessment to estimate the minimum family tax credit is as follows:

• determine if the applicable people are entitled to get a minimum family tax credit
• determine their estimated after-tax annual income for wages and salary
• work out the annual rate they would be entitled to get from the minimum family tax credits - to do this:
  • get the current Inland Revenue threshold for minimum family tax credit
  • subtract the annual income from the threshold rate
  • include this amount in the assessable income

Rena is a sole parent with one child aged 14 years. She works 23 hours per week and earns $23,411.96 (net) per year, ($450.23 (net) per week).

Rena can get a minimum family tax credit to top up her net income to $703.00 per week (at 1 April 2026).

Calculate the minimum family tax credit to include as assessable income as follows:

The total amount of wage and salary income of all applicable people is included in the assessable income calculation.

Although an applicable person may be getting minimum family tax credit or family tax credit, the calculation may not include it as assessable income, if the total wage and salary income for all applicable people is over the Inland Revenue income thresholds.