New Childcare Credit to Ease the Burden for Hardworking Families
Great news for hardworking families! Starting July 1st, a new credit (FamilyBoost) aimed at easing the cost of early childcare education (ECE) is here, thanks to Finance Minister Nicola Willis. This initiative is designed to help parents and caregivers manage the rising costs of living, especially when it comes to childcare expenses.
What’s the Deal?
Parents and caregivers can now receive a partial reimbursement for their ECE fees. You can get back up to 25% of your weekly fees, with a maximum of $75 per week. This move is part of a broader effort to support families struggling with high costs in housing, food, and, of course, childcare.
Why is This Important?
The cost of ECE can be a significant barrier, especially for families with two working parents. For many, it can be the deciding factor in whether the second earner can afford to stay in the workforce. The FamilyBoost credit aims to make it easier and more worthwhile for families with young children to continue working, by providing direct assistance with ECE fees.
Who is Eligible?
FamilyBoost is available to all families earning up to $180,000 a year who have childcare costs. However, to ensure the support reaches those who need it most, the maximum repayment amount will gradually reduce for families earning more than $140,000. Inland Revenue (IR) will calculate eligibility based on your household income over the past three months.
How Does It Work?
To make things smooth and hassle-free, ECE invoices will be submitted directly through IR’s online system, myIR. Parents and caregivers can submit their invoices every three months and receive their FamilyBoost refund as a lump sum. Start collecting your invoices from July 1st, so you can apply and get refunded from October 2024.
Next Steps
IR will be working closely with ECE providers to ensure they are ready to support families in accessing FamilyBoost. Full details, including how to apply, will be available on Budget Day, May 30, 2024.
We’re Here to Help
The FamilyBoost Credit is only one of the ways the government is responding to the changing economic needs in our country. If you are feeling the pinch and want to make sure your financial future is secure, reach out to us today. Our team of friendly Client Advisors would love to talk to you about your unique circumstances.
Together we can achieve more.
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