Working for Families tax credits and family scheme income

This interpretation statement gives an overview of eligibility for Working for Families tax credits and discusses the adjustments required to a person’s net income to determine family scheme income. Key adjustments that may be relevant are income from associated trusts and companies, passive income over $500 of dependent children, payments from trusts other than beneficiary income and other payments supporting the family if they total more than $5,000.

This interpretation statement was released for public consultation as PUB00513 with consultation closing on 9 December 2025. 

Since consultation closed, the Government announced changes to the Working for Families rules.  The changes were introduced as part of Budget 2026 on 28 May 2026 and include changes to the definition and calculation of family scheme income, and changes to the residency rules.  These changes are contained in the Taxation (Budget Measures) Act 2026, which received Royal Assent on 5 June 2026. 

The changes include amendments intended to simplify certain aspects of the family scheme income adjustments and to remove or modify some existing adjustments. 

As these legislative changes do not take effect until 1 April 2027, the Commissioner has decided to proceed with publishing this interpretation statement in substantially the same form as consulted on, reflecting the law as it currently applies. 

A revised item incorporating the enacted legislative changes will be published on or before 1 April 2027.