Tax Watch: 24 June 2026

Information releases

To provide transparency about how decisions are made in the lead up to the enactment of legislation, Inland Revenue has issued the following information releases.

Working for Families tax credits and family scheme income

This interpretation statement explains who is eligible for Working for Families tax credits and how to calculate family scheme income, which determines entitlement. Family scheme income starts with net income and is adjusted for certain items such as trust and company income, some child income, maintenance payments, overseas pensions, and other financial support. It also notes that from 1 April 2027, legislative changes will simplify the calculation and increase the “other payments” threshold from $5,000 to $8,000.

Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026

Inland Revenue has released information about this Act including policy papers, Cabinet decisions, consultation outcomes, and departmental reports that supported the Act.

These cover the changes made to infrastructure thin capitalisation rules, tax debt reduction initiatives, student loan interest relief, GST bad debt deductions, and various remedial tax amendments.

Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2026

This information release contains Inland Revenue advice, Cabinet documents, and Cabinet decisions that led to the amendment regulations being approved in February 2026.

The amendment regulations reduce the prescribed interest rate used for FBT purposes on employer-provided loans, reflecting lower market interest rates.

Consumers Price Index updates

Inland Revenue has released its annual adjustments to standard cost amounts for household services for the 2026 income year. 

Childcare providers

The hourly standard cost childcare providers can use for the 2026 income year has increased to $4.70 per child and the annual administration and record-keeping standard cost to $460, reflecting a 3.1% increase in the Consumers Price Index for the year to March 2026.

Short-stay accommodation

This daily standard cost has increased to $65 per guest for owned dwellings and $59 per guest for rented dwellings, reflecting the 3.1% increase in the Consumers Price Index for the year to March 2026.

Household boarding service providers

The weekly standard cost for boarding service providers in the 2026 income year has increased to $245 per boarder, reflecting the 3.1% increase in the Consumers Price Index for the year to March 2026.