FamilyBoost Expansion to Cut Early Childhood Education Costs for NZ Families

From 1 October 2025, tens of thousands of New Zealand households will benefit from expanded support for early childhood education (ECE) costs through the Government’s FamilyBoost scheme, Finance Minister Nicola Willis has announced.

The changes follow the passage of the Income Tax (FamilyBoost) Amendment Bill, which was approved in Parliament with cross-party support.

Stronger Support for Families

Minister Willis said the expansion would provide meaningful financial relief:

“The changes made today put more money in the pockets of households currently receiving FamilyBoost and extend the scheme to more households,” she explained.

FamilyBoost, introduced earlier in 2024, allows parents to claim a percentage of their weekly ECE fees back from the Government. Under the new law, that percentage rises significantly, while more families will now qualify for support.

• The proportion of ECE fees claimable rises from 25% to 40%.

• Families paying $100 a week in fees will now receive $40 a week, up from $25.

• Families paying $200 a week will see their entitlement rise from $50 to $80 a week.

• The maximum claimable amount increases from $75 to $120 per week, covering fees up to $300.

This equates to savings of up to $4,160 per year for families with higher ECE expenses.

Expanded Eligibility Threshold

The Act also raises the income threshold for eligibility:

• From $180,000 a year to just under $230,000 a year.

• This change makes an additional 21,000 households eligible for FamilyBoost payments.

To date, 87,800 households have registered, with more than 67,000 already receiving payments.

Political Support and Reversal

Willis welcomed the decision by the Labour Party to support the changes, despite initially opposing the scheme.

“More than 60,000 families have already benefited from FamilyBoost and I’m sure they will welcome Labour’s ‘Road-to-Damascus’ conversion,” she said.

The bipartisan backing signals a recognition across the political spectrum of the pressure young families face from rising costs.

Timing of Payments

Although the legislation passed in September, the changes were backdated to 1 July 2025. Families can claim the increased rate starting 1 October, which will cover the first three months at the new entitlement level.

Simple Application Process

Households can apply for FamilyBoost payments through the Inland Revenue Department (IRD) website. Willis stressed the simplicity of the process:

“Families who have made a claim tell us it is simple to do and only takes five minutes.”

Providing Relief During Tough Times

Willis said the expansion comes at a critical time: “The last few years have been tough for many families, and FamilyBoost provides support at a time when many younger families are facing additional costs.”

By easing the financial strain of childcare, the Government hopes to help families balance work and caregiving, while also supporting broader workforce participation.

Looking Ahead

With the expanded FamilyBoost, the Government projects a significant boost in uptake, reducing barriers to affordable childcare and supporting parents’ participation in the workforce.

The scheme is now one of the most generous childcare support measures in New Zealand’s history, providing direct cash relief to families and incentivizing access to quality ECE.