Government support: subsidies and rebates for NZ families

At a glance: NZ families with young children may be eligible for 20 Hours ECE, the Work and Income Childcare Subsidy, FamilyBoost, Best Start, and the OSCAR Subsidy. Each works differently and covers a different stage or type of care. This chapter explains each one in plain English, so you know what to actually check your eligibility for.

If there's one chapter in this guide we'd ask you to bookmark, it's this one. Government support for childcare in NZ isn't one single thing — it's a handful of different schemes, each with their own rules, each potentially relevant at different stages. Most parents we've spoken to know one of these exists (usually 20 Hours ECE), and have never heard of one or more of the others.

This chapter is a plain-English overview to help you know what to go and check properly — not a substitute for checking your actual eligibility with Work and Income or IRD, since eligibility depends on your specific circumstances and the rules can change.

20 Hours ECE

Who it's for: All children aged 3 to 5, regardless of household income.

What it covers: Up to 6 hours a day, up to 20 hours a week, of ECE fees at participating licensed services — including ECE centres, kindergartens, home-based ECE, Playcentre, and Kōhanga Reo.

How to get it: You don't apply separately. Your ECE service applies the funding directly. You just need to confirm your child's enrolment and hours with them.

The catch to know about: "20 hours" doesn't always mean "free." Many services charge additional fees on top — for food, for hours beyond the funded 20, or for extras. Ask your service directly what your actual weekly cost will be with 20 Hours ECE applied.

Childcare Subsidy (Work and Income)

Who it's for: Families with children under 5 (and in some cases up to 6) who meet income thresholds — this is an income-tested payment, unlike 20 Hours ECE.

What it covers: A contribution toward approved childcare costs, paid based on your income, the number of children, and the hours of care you need. It's designed to work alongside 20 Hours ECE for 3 to 5 year olds, and can apply on its own for under-3s.

How to get it: Apply through Work and Income (MyMSD or in person). You'll need details of your income and your childcare provider.

Worth knowing: Because it's income-tested, eligibility and amounts vary significantly. It's worth applying even if you're not sure you'll qualify — Work and Income will assess based on your actual circumstances rather than a quick self-assessment.

FamilyBoost

Who it's for: Families with children aged 5 and under who pay for ECE, with an income-based reduction in the amount as household income rises.

What it covers: FamilyBoost is a rebate, administered through IRD (Inland Revenue) rather than Work and Income, that returns a percentage of your ECE costs — up to a set quarterly cap. Unlike 20 Hours ECE or the Childcare Subsidy, this works as a rebate on costs you've already paid, rather than a reduction at the time of payment.

How to get it: Apply through myIR (your IRD online account), submitting your ECE invoices for the relevant period.

Worth knowing: FamilyBoost can be used alongside 20 Hours ECE and the Childcare Subsidy — it's designed to help with costs that remain after those other supports, including the "optional charges" mentioned earlier in this guide. Because it's a rebate on costs already paid, keeping your ECE invoices and receipts organised makes the claiming process much smoother.

Best Start

Who it's for: Families with a baby born or due, regardless of whether you're using any form of childcare in the baby's first year.

What it covers: A weekly payment for the first year of a child's life (with income-tested continuation into years two and three for lower-income families). Best Start isn't tied to childcare specifically — it's general financial support for the early years, but it's worth knowing about as part of the overall picture of support available, especially if you're weighing up when to return to work and what childcare costs will look like once you do.

How to get it: Often applied for at the same time as registering your baby's birth, or separately through Work and Income / IRD.

OSCAR Subsidy

Who it's for: Families with school-age children using an approved Out of School Care and Recreation (OSCAR) programme — before-school, after-school, or school holiday programmes.

What it covers: An income-tested contribution toward the cost of an approved OSCAR programme, similar in structure to the Childcare Subsidy but for school-age care rather than under-5s.

How to get it: Apply through Work and Income. As with the Childcare Subsidy, the amount depends on income, number of children, and hours of care.

Worth knowing: Not every after-school or holiday programme is OSCAR-approved — if this subsidy matters to your budget, check a programme's approval status before enrolling, as covered in Chapter 4.

What about babysitters?

Worth being upfront about: none of the subsidies above apply to casual babysitting in the way they do to licensed ECE, Childcare Subsidy-eligible care, or OSCAR programmes. Babysitting through The Village Co sits outside this subsidy framework — it's a different kind of care, designed for flexibility rather than as a subsidised full-time arrangement.

That said, FamilyBoost in particular is worth a second look here if cost is tight — because it's a rebate on amounts already spent on ECE rather than a payment tied to a specific provider type, it can free up room in your budget that makes occasional babysitting more affordable, even though the babysitting itself isn't directly subsidised.

If you're reading this from Australia

We're not live in Australia yet, but the broad equivalent to this landscape of NZ subsidies is Australia's Child Care Subsidy (CCS), which as of 2026 includes a 3-Day Guarantee ensuring eligible families get at least three days (72 hours per fortnight) of subsidised care without needing to meet an activity test. There's also Additional Child Care Subsidy (ACCS) for specific circumstances such as financial hardship or grandparent carers. We'll cover this properly once we've launched in Australia.

Our honest advice

Government subsidy systems are, by their nature, a bit of a maze — and they change. Our best advice is: don't assume you're not eligible for something just because you haven't heard of it, and don't assume a previous "no" is permanent if your circumstances have changed. A ten-minute call to Work and Income or a check of myIR can sometimes reveal support you didn't know was there.

Next: Chapter 7 — Babysitters vs. nannies vs. daycare

FAQ

What's the difference between 20 Hours ECE and the Childcare Subsidy?
20 Hours ECE is available to all 3 to 5 year olds regardless of income, covering up to 20 hours a week of ECE fees. The Childcare Subsidy (through Work and Income) is income-tested and can apply to children under 5, contributing toward costs based on your household income and care hours needed.

What is FamilyBoost and how is it different from other subsidies?
FamilyBoost is an IRD rebate that returns a percentage of ECE costs already paid, up to a quarterly cap, for families with children 5 and under. Unlike 20 Hours ECE or the Childcare Subsidy, which reduce costs at the time of payment, FamilyBoost is claimed afterward through myIR based on your ECE invoices.

Do any government subsidies apply to babysitters?
Not directly — subsidies like 20 Hours ECE, the Childcare Subsidy, and the OSCAR Subsidy apply to licensed ECE and approved OSCAR programmes, not casual babysitting. However, FamilyBoost rebates on ECE costs can free up household budget that makes occasional babysitting more affordable.