FamilyBoost Expansion to Ease Financial Burden for Thousands of Families

In a significant move to support families grappling with the rising cost of living, New Zealand's Finance Minister Nicola Willis has announced substantial enhancements to the FamilyBoost scheme, beginning 1 July 2025. These changes, which expand both the rebate rate and income eligibility thresholds, are expected to make a tangible difference for tens of thousands of families across the country.

Higher Rebates for Early Childhood Education

Under the revamped scheme, the FamilyBoost rebate for early childhood education (ECE) fees will increase from 25% to 40%. This adjustment means families paying $100 per week in ECE fees could now receive a $40 rebate, up from $25—an annual benefit increase from $1,300 to $2,080.

The maximum rebate per week is also rising, from $75 to $120. To qualify for this maximum refund, families must pay at least $300 weekly in ECE fees. Nonetheless, all families, regardless of fee level, will now benefit from the higher 40% rebate on their total ECE payments.

Wider Eligibility for Higher-Income Households

The government is also broadening access to FamilyBoost by lifting the household income threshold. Previously, only families earning up to $180,000 annually could qualify for a portion of the rebate. Now, that upper limit is being extended to just under $230,000, thanks to a reduction in the abatement rate for families earning above $140,000.

This policy shift is projected to make 22,000 more households eligible. Based on current uptake rates, up to 16,000 additional families are expected to start receiving the rebate following the expansion.

Implementation Timeline and Access

The upgraded FamilyBoost payments apply to fees paid from 1 July 2025, and claims can be submitted starting 1 October 2025. The rebate continues to be paid quarterly, and the government is encouraging all potentially eligible families to register through the Inland Revenue website. According to Minister Willis, the registration process is user-friendly and takes only about five minutes.

Financial and Administrative Considerations

Encouragingly, officials estimate that these changes can be accommodated within the existing Budget 2024 allocation. The Finance Minister emphasized that only families who actively claim the rebate will receive it, noting that although 60,000 families have already benefited from FamilyBoost, this is fewer than those who are likely eligible.

Additionally, the government is working toward long-term improvements to FamilyBoost. One key proposal under review is to streamline data-sharing, allowing ECE providers to send fee information directly to Inland Revenue. These longer-term initiatives will be incorporated into the Early Childhood Education Funding Review, aimed at evaluating and enhancing all available supports for families with young children.

Aimed at Easing Financial Pressure

"We know many people are still doing it tough," said Minister Willis. "These changes will put more money in the bank accounts of households currently receiving FamilyBoost and extend the scheme to thousands of families that were previously ineligible."

With this expansion, FamilyBoost is poised to become a more powerful instrument in alleviating financial pressure on working families, while reinforcing the government's commitment to supporting early childhood education affordability.