Tax & Income guide · New Zealand
Best Start vs Paid Parental Leave: What Parents Need to Know
Understand how NZ Best Start and Paid Parental Leave interact, when Best Start begins, what happens for an older child and why family income still matters.
Key points
The short answer about receiving both
You cannot receive Best Start and Paid Parental Leave at the same time for the same child.
Best Start can begin after Paid Parental Leave finishes, subject to Working for Families eligibility and the income test.
Best Start for an older eligible child can continue while Paid Parental Leave is received for a new baby.
Other Working for Families payments may continue during Paid Parental Leave when their own conditions are met.
Recommended next step
Estimate your Best Start payment
Enter your own income details and turn the guide into a practical New Zealand estimate.
How Best Start and Paid Parental Leave fit together
The key is whether the two payments relate to the same child and whether the Paid Parental Leave period has finished.
| Check | Best Start for the baby | Other Working for Families payments | Action |
|---|---|---|---|
| Before the baby is born | Not started | May continue for other eligible children | Register or update expected family details as instructed |
| Paid Parental Leave period | Cannot be paid for the same child | May continue if eligible | Make sure the leave end date and child details are correct |
| Day after Paid Parental Leave ends | Can begin if eligible | Continue under their own rules | Check the notice of entitlement and income estimate |
| Until the child turns three | Can continue, subject to income and eligibility | Assessed separately | Report family and income changes |
The same child cannot receive both at once
Paid Parental Leave replaces income for a period around the arrival of a child. Best Start is a Working for Families credit for the first three years. Inland Revenue does not pay both for the same child over the same period.
This is a timing rule, not a permanent choice between the two. Receiving Paid Parental Leave does not use up the entire Best Start period. If the family qualifies, Best Start can begin when Paid Parental Leave finishes and continue until the child’s third birthday.
Best Start normally begins after leave finishes
Use the final Paid Parental Leave date, not the date the parent returns to work, unless they are the same. The calculator treats the following day as the potential Best Start start date. Inland Revenue’s notice remains the authority for the actual payment schedule.
Apply or update Working for Families early. Inland Revenue specifically recommends doing this before leave finishes for a first baby, so the Best Start assessment can be ready and an avoidable payment gap is less likely.
Estimate the payment after leaveFollow the application checklist
An older child’s Best Start can continue
The no-overlap rule is about Best Start for the child connected with the Paid Parental Leave claim. Inland Revenue says Best Start for previous children can continue if those children remain eligible. A family may therefore receive leave for a new baby and Best Start for an older child under three.
Calculate each child separately using the correct birth date. Their Best Start years and income-testing transition can differ, particularly when one child was born before 1 April 2026 and another was born later.
Paid Parental Leave still affects family income
Paid Parental Leave is taxable and is included when Working for Families family income is worked out. It can therefore affect the Best Start income test even though the two payments do not overlap for the same child.
For a child born on or after 1 April 2026, Best Start is income-tested from the first year. When the payment begins after leave, family income above $79,000 reduces the annual rate by 21% of the excess.
Build a simple family payment timeline
Write down the baby’s birth date, Paid Parental Leave end date, the next day and the third birthday. Add the 1 April tax-year boundary because a new annual income estimate can change the Best Start rate from that date.
Treat the timeline as a planning check rather than a payment promise. An application, eligibility decision, income update or processing issue can change the deposit date. Read the notice of entitlement and contact Inland Revenue if the dates do not line up with the family’s records.
Frequently asked questions
Can I receive Best Start and Paid Parental Leave together?
Not for the same child over the same period. Best Start can begin after Paid Parental Leave finishes.
When does Best Start start after Paid Parental Leave?
It can start from the day after Paid Parental Leave finishes, provided the family and child meet the Working for Families and Best Start requirements.
Can Best Start continue for my older child?
Yes, an eligible older child’s Best Start can continue while Paid Parental Leave is received for a new baby.
Can I receive other Working for Families credits during Paid Parental Leave?
Potentially. The same-child restriction described by Inland Revenue applies specifically to Best Start; the other credits have their own requirements.
Does Paid Parental Leave count as family income?
Yes. It is a taxable government payment and is included in family income for Working for Families calculations.
Should I apply before my Paid Parental Leave ends?
Yes. Inland Revenue recommends applying early so an eligible Best Start payment can begin on time after leave finishes.
Your next step
Get an estimate based on your own details
Enter your own income details and turn the guide into a practical New Zealand estimate.