Are you expecting a baby, or do you have children already? You could be eligible for financial assistance.

Expecting a child is a very exciting time for parents. But it can also be a stressful time getting all your finances sorted before baby arrives. A very relevant issue for me right now as I am due for my third child in August! For parents and business owners it is important to be prepared, and to know that the government provide various avenues of financial support for people with children.

Paid Parental Leave (PPL)

Paid Parental Leave is for parents that are an employee or self-employed. You could be entitled to PPL if you have worked for at least an average of 10 hours per week, for any 26 weeks of the 52 weeks before your child arrives. The length of PPL has been increasing over previous years and can now be paid for a maximum of 6 months. You would receive your average/ordinary weekly pay up to the maximum weekly amount of $606.46 before tax. Your employer may also be required to keep your job open for 52 weeks. You can now apply for this through your MyIR account online. If you are unsure if you are eligible, try the PPL checker on the SmartStart website.

Keeping in touch days

While on PPL, you can work from time to time without it affecting your PPL payments. You can only work a maximum of 64 hours of paid work for your employer during your PPL period, but not within the first 28 days after your child is born.

Best Start Payments

Best Start payments were introduced in July 2018 and are weekly payments of $60 per child. All eligible families receive $60 a week until your baby turns one, no matter what your household income is. If your household income is less than $79,000 p.a. then you will continue to receive $60 per week until your child turns three. You cannot receive Best Start payments while you are getting PPL. If you are entitled to both, your Best Start payments will start after your PPL finishes. You can apply when registering your baby on the SmartStart website.

Working for Families Tax Credits (WfFTC)

Working for Families Tax Credits are payments for families with dependent children aged 18 and under. The payments are to help you raise your family. Entitlements are based on your yearly family income and family circumstances. If you have one child, the entitlement ends around $80,000 of yearly income. If you have three children, the entitlement ends around $120,000 of yearly income. You can estimate how much WfFTC you may be entitled to on the ird.govt.nz website.

WINZ Childcare Subsidies

You may be able to get subsidised childcare for up to 50 hours a week if you are working or studying. How much you get depends on your income and the size of your family. Annual income thresholds for a family with one child is $72,748 and a family with three children is $93,548. The childcare subsidy is only paid for up to 9 hours of childcare a week if you are not working or studying. Families already getting 20 hours free Early Childhood Education for their children 3 years and over cannot get the childcare subsidy for those same hours.

For more information the SmartStart website is a great place to start - smartstart.services.govt.nz. If you require any further details or accounting & taxation advice, please do not hesitate to contact us on 06 374 7059