- Hon Nicola Willis
From the start of next month tens of thousands of households will get extra help with the cost of early childhood education (ECE) thanks to the expansion of FamilyBoost, Finance Minister Nicola Willis says.
"Legislation expanding the ECE support scheme passed through its final stages in Parliament today.
"I am delighted that despite previously voting against FamilyBoost, Labour has today reversed its position, sensibly voting to support the enhanced FamilyBoost scheme.
"More than 60,000 families have already benefited from Family Boost and I'm sure they will welcome Labour's 'Road-to-Damascus' conversion.
"The changes made today put more money in the pockets of households currently receiving FamilyBoost and extend the scheme to more households," Nicola Willis says.
"Because the changes took effect from 1 July, households can apply for their first three months at the increased rate from 1 October.
The Income Tax (FamilyBoost) Amendment Bill increases the proportion of ECE fees families can claim from 25 to 40 per cent.
"An eligible household with fees of $100 a week will see its FamilyBoost entitlement increase from $25 to $40 a week, or from $1300 to $2080 a year.
"The entitlement for a family with weekly fees of $200 could increase from $50 to $80 a week, or $2600 to $4160 a year.
"FamilyBoost is paid on fees up to $300 a week so the maximum a family can now claim increases from $75 to $120 a week.
The Act also increases the household income limit for FamilyBoost from $180,000 a year to just under $230,000, making about another 21,000 households eligible for help with ECE costs.
To date, 87,800 households have registered for FamilyBoost and more than 67,000 families have received payments through the scheme.
"I encourage all parents paying for ECE who have not yet checked their eligibility for entitlement to do so.
"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.
"Households can check eligibility and apply on Inland Revenue's website. Families who have made a claim tell us it is simple to do and only takes five minutes."
Notes to editor:
Officials have been asked to progress work on longer term improvements to the scheme, including exploring ways to make the process more automated and easier for families.
FamilyBoost is also included in the Early Childhood Education Funding Review which is examining the full range of supports available to families with children in early childhood education.
Approximately 162,000 families have children enrolled in ECEs across New Zealand.
