Working out your family income

When we work out your Working for Families payments, we take into account your family income, which is your income and your partner’s income added together, plus or minus any adjustments.

Income earned by your children is generally not included as family income. However, some passive income of children (see below) can be included. 

We take the income included in your income tax assessment or IR3 income tax return and add in (or take away) certain types of non-taxable income. The income added in or taken away is referred to as an adjustment.

Here are the most common adjustments.

Adjustments we know about

We can work out some adjustments ourselves because we have all the information we need.

Child support payments

Child support payments received from an ex-partner are included as family income.

If you pay child support, your payments are taken away from your family income.

Adjustments you need to tell us about

In some cases, we do not have the information needed to calculate an adjustment and you need to give us the required information. Do this by filling out our Adjust your income — IR215 form at the bottom of the page.

Private maintenance

Payments you get from a parent to help with the care of a child are included as family income. We’re not involved with these payments, instead, you arrange them directly with the parent.

If you pay private maintenance, your payments are taken away from your family income.

Passive income of children

If you have a dependent child who receives more than $500 a year from passive income, you need to include the amount over $500 as family income.

Passive income includes interest, dividends, rent, and royalties.

Income of a non-resident partner

If you have a partner who is not a New Zealand tax resident, their worldwide income is included as family income.

Share of net profits from a close company

If you’re a major shareholder (who holds 10% or more of the voting shares) in a close company, your share of the net profit of the company is included as family income.

Voluntary Bonding Scheme (VBS) payments

This scheme is for recently graduated teachers, doctors, nurses, midwives and vets.

Any VBS payments you get must be included as family income.

Other payments received to help with household expenses

This is money someone gives you to use for your family’s day-to-day living expenses.

If the total for the year is more than $5,000, the total amount must be included as family income. If the total is less than $5,000, none of it is included.

Full list of adjustments

There are other adjustments which are less common.

Adjusting your income for Working for Families and student loans

Our IR215 form lists all adjustments and gives explanations of each adjustment.