New Childcare Credit to Ease the Burden for Hardworking Families
Exciting update for all the hardworking families out there! From July 1st, there’s a new credit to make early childcare education more affordable, all thanks to Finance Minister Nicola Willis. This move is all about supporting parents and caregivers with the increasing living costs, especially when it comes to childcare bills.
What’s the Deal?
Parents and caregivers can now get some money back for their ECE fees. You could get up to 25% of your weekly fees refunded, up to a max of £75 a week. It’s all part of helping families deal with high costs for housing, food, and, of course, childcare.
Why is This Important?
The price of ECE can really throw a spanner in the works, especially for families with both parents working. For many, it’s the make-or-break point on whether the second earner can keep their job. The FamilyBoost credit is all about helping families with young kids stick with work by chipping in with ECE costs.
Who is Eligible?
FamilyBoost is up for grabs for all families making up to $180,000 a year with childcare costs. Yet, to make sure it goes to those who really need it, the max payback will decrease gradually for families earning above $140,000. Inland Revenue (IR) will figure out if you qualify based on your household income from the past three months.
How Does It Work?
To keep things easy and hassle-free, ECE invoices will go straight through IR’s online system, myIR. Parents and caregivers can send in their invoices every three months and get their FamilyBoost refund all at once. Remember to start gathering your invoices from July 1st, so you can apply and get refunded from October 2024.
Next Steps
IR will be teaming up with ECE providers to ensure they’re all set to help families access FamilyBoost. All the info, including how to apply, will be up on Budget Day, 30th May 2024.
Questions on what this means for you? Give us a shout, we’re here to help.