Childcare Support
Childcare Subsidy
The Childcare Subsidy helps working, studying or training parents pay for approved early childhood care for children under 5. Rates drop across four income brackets, so partial subsidies often go unclaimed — many parents assume they earn too much. Up to 50 hours a week per child are subsidised, paid direct to the provider.
What is this?
Childcare Subsidy is administered by MSD. Social Security Act 2018, s.36
Am I eligible?
- You have a child under 5 attending an MSD-approved childcare provider
- You work, study, or train for at least 3 hours a week (outside the free 20 Hours ECE)
- Your weekly family income is under $2,404 (1 child)
- You're a NZ citizen, resident, or hold an eligible visa
How much could I get?
1 child — top bracket: up to $6.72/hour when weekly family income is below $1,131.
Lowest bracket still pays $2.09/hour for incomes up to $2,404/week.
Up to 50 hours per week per pre-schooler; OSCAR (before/after school) up to 20 hrs/wk.
Rates current as of Budget 2025. Personal amounts depend on your situation.
How to apply
- Apply through Work and Income (MyMSD)
- Your childcare provider must be approved by MSD
- Provide proof of income and childcare arrangements
- Subsidy is paid directly to your childcare provider
Documents you'll need
- · Proof of income (payslips or IR3)
- · Childcare provider details and approval number
- · Children's birth certificates
- · Work or study schedule (to confirm childcare need)
Frequently asked questions
Can I get Childcare Subsidy if I already use 20 Hours ECE?
Yes — the subsidy applies to hours beyond the free 20 Hours ECE. Many families use 20 Hours ECE + Childcare Subsidy to cover a full working week.
What is the income cut-off for Childcare Subsidy?
For one child, the last paying bracket ends at $2,404/week of family income. Thresholds rise with each additional child — a 2-child family qualifies up to $2,748/week.
How is Childcare Subsidy paid?
Directly to the MSD-approved provider, who deducts it from your childcare invoice. You see a reduced balance rather than receiving cash.
Related benefits you might also qualify for
Working for Families Tax Credit
Working for Families pays weekly tax credits to families with children. See 2026 rates, income thresholds, abatement rules and how to register with IRD.
Best Start Tax Credit
Best Start pays up to $77/week for each child under 3. See 2026 eligibility, the new Year 1 income test, and how to claim via IRD.
Community Services Card
The Community Services Card cuts GP fees, prescription costs and unlocks higher subsidies. See 2026 income thresholds and how to apply via MyMSD.
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