Grants, Financial Help, and Government Assistance Support for Families with Low Income in New Zealand
You’re doing everything right. You’re working hard, managing your household, and raising your kids. But the money still doesn’t stretch far enough. Doctor visits, childcare, electricity bills, they all demand payment at once. You need help, but where do you even start looking? Are there really government subsidies out there that can cover living costs?
New Zealand offers financial support to families in your situation. Grants, subsidies, and no-interest loans exist to ease the pressure. The problem? Most families don’t know what’s available or how to access it.
This guide walks you through government programmes and community support designed for low-income families. You’ll learn what you qualify for and exactly how to apply.
Childcare Subsidies: Working for Families
If you’re working, studying, or need childcare for other reasons, the ongoing costs can eat up a huge chunk of your budget. Childcare subsidies help cover those fees so your child can attend early learning while you do what you need to do.
The government pays this money directly to your childcare provider. You never see it in your bank account, but you’ll notice it on your invoice as a reduced amount you owe.
Who Can Get Childcare Subsidies from the Government
You need to be the key person caring for the child. You also need to be a New Zealand citizen or permanent resident actually living here.
Your household annual income matters. The subsidy targets low and middle-income families, with specific limits depending on how many people live in your home.
The child must be under 5 years old (though some exceptions exist for children starting school). They need to attend an approved early childhood program for at least 3 hours each week.
Government Approved Early Childhood Education Programs
Your child’s programme needs to be licensed and approved by the New Zealand government, such as:
- Kindergartens and preschools
- Childcare centres and creches
- Playcentres and playgroups
- Kohanga Reo, Punanga Reo, Aoga and other language and culture programmes
- Approved home-based care
How Much Financial Help You’ll Get?
The amount changes based on your family size, income, how many hours your child attends each week, and what your provider charges.
Most families get support for up to 9 hours of childcare weekly. This covers basic needs if you’re not working or studying.
But if you’re employed, studying, training, or in certain other situations, you can get up to 50 hours of childcare a week. But you can only get 50 hours a week if you’re working shifts at night, dealing with serious illness or disability, or caring for a hospitalized child or one receiving the Child Disability Allowance.
There’s a catch though. If your child’s other parental caregiver is available to watch them, you usually can’t claim more than 9 hours weekly. The subsidy covers childcare you genuinely need, not to subsidise care that’s already available at home.
Applying for the Subsidy
Submit your application and provide financial documents like payslips, or bank statements showing your income. You’ll also need proof that your child is enrolled in an approved programme and their birth certificate or passport.
The support starts from the day childcare begins, or from when you apply if you’re applying after care has already started.
(OSCAR) Out of School Care and Recreation provides a safe and educational environment for children while parents have to be at work. It’s best to apply for these subsidies 4 weeks in advance, so the government department has time to process your application.
You can apply here for the OSCAR program or here’s the online application form for childcare subsidy.
Working for Families Tax Credit
Raising children costs money. Between school uniforms, groceries that vanish overnight, and the endless parade of growing feet needing new shoes, your wallet takes a beating. That’s where Working for Families Tax Credits come in.
This government ‘allowance’ puts money back in your pocket if you’re raising dependent children or special needs children with disability. The payments come through Inland Revenue as support to help cover the actual costs of having kids in your household.
What Makes Up Working for Families?
Working for Families isn’t just one payment. It’s actually several different types of support bundled together:
- Family Tax Credit (FTC): The main component most families receive. You get a set amount for each child based on their age and your household income.
- In-Work Tax Credit (IWTC): Extra support for working families, designed so employment doesn’t leave you financially worse off.
- Minimum Family Tax Credit (MFTC): Ensures your household income won’t drop below a certain level, even if you’re on minimum wage.
- Best Start Tax Credit (BSTC): Additional help for families with babies or toddlers during those expensive early years.
Who Qualifies for this Government Help?
To qualify, you need to:
- Be 16 or older, caring for at least one dependent child under 18
- Be a New Zealand tax resident living in NZ (your children must be NZ residents too)
- Not be receiving a main benefit or weekly payment from Work and Income like Jobseeker Support
- Have income from wages or salary with tax deducted (self-employed income doesn’t qualify for IWTC)
Your payments gradually reduce as your income increases, so you won’t lose everything with a pay rise.
Application Process for this NZ Government Tax Credit
Apply through Inland Revenue’s myIR online system. You’ll need several documents like pay slips, tax returns, and proof of residency for you and your children.
Tell Inland Revenue whenever your situation changes, whether it’s a new job, another baby, or relationship changes. Reporting updates quickly means you get the right amount and avoid surprise bills from overpayments.
WINZ Emergency Benefit In New Zealand
The WINZ Emergency Benefit is a one-off payment to help low-income families in New Zealand with unexpected expenses. The benefit is paid directly to you as a lump sum and is not means-tested.
To be eligible for the benefit, you must be:
- A New Zealand citizen or resident
- In receipt of an unemployment benefit, sickness benefit, invalids benefit or domestic purposes benefit.
- Experiencing financial hardship because of an unexpected event such as an accident, illness or job loss.
To apply for the Emergency Benefit, Call 0800 559 009, but first, run through this quick questionnaire to see what you qualify for.
Applying for these benefits takes time, so if you have an urgent need, an emergency loan or medical loan might be a better option for you.
Sole Parent Support In New Zealand
There are many grants and subsidies available to solo parents in New Zealand. The main one is the Sole Parent Support benefit, which is available to those who are primary caregivers of dependent children. This benefit is means-tested, so your income will affect how much you receive.
You are only eligible for this if you are:
- 20 years or older. If you are younger than 20, please look into the Young Parent Payment here
- A single parent or caregiver
- Have one or more dependent children under the age of 14 years
- You are not in a relationship
- You’re not receiving adequate financial support, especially from other assistance programs
The In-work Tax Credit is also available to some sole parents. To be eligible, you must be working at least 20 hours per week and earning an income below a certain threshold. This credit can help top up your wages and make it easier to get by on a low income.
If you’re struggling to afford childcare, you may get help through the Working for Families childcare subsidy, as mentioned above. This subsidy can cover up to 50% of your childcare costs, making it easier to afford quality care for your child while you work.
Finally, if you’re struggling with housing costs, you may be eligible for the Accommodation Supplement. This supplement can help with the cost of rent or mortgage payments, making it easier to keep a roof over your head.
Cut Healthcare Costs with a Community Services High Use Health Card
Doctor visits add up. So do prescriptions, especially if you or your kids need regular medications. For families on tight budgets, even necessary healthcare becomes something you put off or skip entirely.
The Community Services Card helps with exactly this. It’s a government card that slashes what you pay for medical care and prescriptions. You don’t need to be on a benefit to get one – plenty of working families qualify based on their income.
Who Can Get a Community Services Card
To qualify, you need to:
- Be at least 16 years old
- Hold citizenship, permanent residency, or protection status in New Zealand
- Currently live in New Zealand with plans to stay
- Have an income below set thresholds (these change based on how many people are in your household)
Work and Income manages these cards for the Ministry of Health.
How to Apply for this WINZ Grant
Pick up a form from Work and Income, your GP’s office, or a pharmacy. You can also download one online.
You’ll need two forms of ID such as a birth record, passport, or licence. If you’re not receiving a benefit, bring proof of your income too.
Submit everything to Work and Income and they’ll process your application.
What the Community Services Card Gets You
Once you have your Community Services Card, you’ll pay less for:
- GP and nurse appointments
- Prescriptions (sometimes completely free)
- After-hours clinic visits
- Emergency dental treatment at hospitals or approved providers
- Public transport in some areas
- Glasses for kids under 16 (free or heavily discounted)
If you need hospital treatment outside your local area, the card can help with getting there and finding somewhere to stay.
Some councils and community organizations offer their own discounts to cardholders, so ask around locally to see what else you might access.
Allowance and Grants are Available for Low Income Families
Financial pressure affects families everywhere, but help exists. Working for Families, Childcare Subsidies, Community Services Cards, and programmes like Good Shepherd loans provide real relief when money gets tight.
Start by checking your eligibility for Working for Families or applying for a Community Services Card. If high-interest debts are draining your budget, consider consolidating them into one manageable payment. Our debt consolidation loans help families break free from expensive credit that keeps you stuck.
Ready to take control? Explore your options today.
by Ash Horton
December 15, 2022
Ash is a professional content writer with extensive experience in business development in the financial services. Ash has founded businesses from the age of 19, including franchising ventures, and working alongside some of the largest retailers in the world.
