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Inland Revenue
Inland Revenue
Inland Revenue

Tax Policy

Announcements
PUBLISHED 7 July 2025

Govt proposes adjustments to FamilyBoost

Finance Minister Nicola Willis today announced proposed changes to the FamilyBoost scheme:

  • Lifting the threshold for maximum eligible income from $45,000 to $57,286 per quarter ($180,000 to $229,100 annual household income)
  • Increasing the amount that an eligible family can claim from 25% of early childhood education costs to 40% or a maximum of $1,560 (up from $975) each quarter.
  • Slowing the abatement rate from 9.75% to 7% for household income over $35,000 per quarter

 

These changes are intended to apply for early childhood education costs incurred in the 1 July to 30 September 2025 quarter onwards.

These are only proposals at this stage and legislation will be introduced to give effect to these changes. For details of the proposals, see the Government’s announcement. In addition, Inland Revenue has produced some answers to common questions on the proposals

More information will be published on this site when the Bill is introduced. Inland Revenue will update its existing guidance material following enactment.