Five Million Voices

Should the FamilyBoost tax credit be increased and its eligibility expanded?

The bill amends the Income Tax Act 2007 to raise the FamilyBoost tax credit amount and broaden who qualifies for it. FamilyBoost reimburses a portion of early childhood education costs for eligible families.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the bill provides cost-of-living relief to families with childcare costs at a time when families are struggling with rising food and power prices.
  • Supporters argued that targeted subsidies for families with young children are sensible economic policy, and that raising the payment and widening eligibility means more families will receive support.
  • Members across the House, including the Opposition, said families had been promised this money and that increasing the payment delivers more support to those who can claim it.
Why oppose it
  • Critics argued the scheme remains cumbersome, requiring parents to gather invoices and apply quarterly through myIR, which disadvantages time-poor and lower-income families who are less able to navigate the process.
  • Critics argued the bill was passed under urgency without select committee scrutiny, and that amendments to backdate the start, raise eligibility, or lower the abatement threshold were rejected.
  • Critics argued a more universal approach, such as extending early childhood education to two-year-olds, would reach more families and children than the current claim-based model.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

This bill changes FamilyBoost, a tax credit that helps families with the cost of early childhood education (ECE), such as daycare and preschool fees. Under FamilyBoost, eligible households claim back part of their childcare costs as a quarterly payment. The bill makes the scheme more generous in two ways: it lifts the share of ECE fees families can claim back (raising the maximum quarterly payment), and it eases the income test so that families further up the income scale can still qualify. It affects working parents of young children who pay for early childhood education.

It is a government bill delivering on a commitment to help families with the cost of living. Supporters argue that increasing the rebate and widening eligibility puts real money back in the pockets of parents facing high childcare bills, easing financial pressure. Opponents argue the scheme is complex and under-claimed, that extending help to higher-income households is poorly targeted, and that subsidising families does little to tackle the underlying cost of childcare itself.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Income Tax (FamilyBoost) Amendment Bill · Third Reading, 16 Sept 2025
Parliament voted 107–15 — it passed.