��һ�ǿ�����

The Government is increasing the early childcare refund that families will receive under FamilyBoost and also widening the eligible income thresholds.

Finance Minister Nicola Willis announced the policy tweaks at an early childcare centre in Johnsonville this morning, saying the changes would leave thousands of households better off.

The maximum rebate will increase from 25% to 40% of weekly fees. The annual income threshold will be increased to $229,000.

“We know many people are still doing it tough. These changes will help many families deal with the increased costs that come with having young children,” Willis said.

“FamilyBoost rebates are calculated according to the weekly fees parents pay, so the maximum payment is also increasing, from $75 a week to $120 a week.”

Finance Minister Nicola Willis talking with children and parents after her FamilyBoost announcement at Curious Minds Early Learning in Johnsonville. Photo / Mark Mitchell

The maximum FamilyBoost refund is available to those who pay weekly fees of $300 or more.

FamilyBoost is a three-monthly rebate on families’ weekly childcare costs. The more a family spends on childcare, the higher the rebate.

It was introduced as Government policy in March 2024 and started in July that year. Families had to keep copies of their early childcare invoices to submit for a payment, which raised questions about how many eligible families would end up receiving the payment.

Willis said today that IRD would investigate a direct fee-refund model.

“They will be working with early childhood services for the next little while to see whether we can have a claims system that allows fees to be directly claimed by early childhood providers so parents don’t need to do the work with IRD,” she said.

Willis said the changes meant bigger payments for many families who already take part in the scheme.

“Cabinet has also decided to increase the number of families eligible for the scheme, by reducing the abatement rate for families earning more than $140,000.

“This means the upper limit for households to receive a portion of FamilyBoost increases from $180,000 a year of income to just under $230,000.”

Willis said around 60,000 families had claimed the FamilyBoost tax credit.

“The changes we are making will make around 22,000 more households eligible for the scheme. Based on the current take-up rate, officials estimate this may result in up to 16,000 more families accessing the payment.

It comes after issues were raised with the policy, including early data showing low uptake and IRD admitting the number of families it said would be eligible for the full $75 a week benefit of its flagship childcare tax policy was wrong.

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.