Key takeaways
- If your family earns under $1,131 a week before tax with one child, you can get $6.72 an hour toward before-school care, after-school care and holiday programmes — up to $134.40 a week in term time and $336.00 a week in the school holidays.
- The same rate scale pays the Childcare Subsidy for under 5s, for up to 50 hours a week of daycare, kindergarten or approved home-based care.
- The money is paid straight to your childcare provider or holiday programme, never to you, and it is not taxable.
- The income limits are hard cut-offs. With one child the subsidy ends at $2,404 a week of gross family income, with two children at $2,748, with three or more at $3,091.
- Payments only run from when care starts or from the day you apply, whichever is later, so apply 3 to 4 weeks before you need it. There is no backdating to cover fees you have already paid.
- Use our childcare subsidy calculator to see your rate and what it adds up to over a year.
In this guide
Childcare is one of the biggest bills a working family faces, and the government help on offer is real — but the official pages are strangely quiet about the numbers. If your family earns under $1,131 a week before tax with one child, Work and Income will pay $6.72 an hour toward before-school care, after-school care and school holiday programmes, up to $134.40 a week in term time and $336.00 a week in the holidays. It goes straight to your provider, so your invoice simply shrinks. This guide sets out the full rate tables for the OSCAR Subsidy (school-age children) and the Childcare Subsidy (under 5s), who qualifies, and how to apply — or you can skip straight to the calculator and see what you’d get.
What the OSCAR Subsidy is
OSCAR stands for Out of School Care and Recreation. The OSCAR Subsidy is a Work and Income payment that helps cover three kinds of care for school-age children: before-school care, after-school care, and school holiday programmes. It covers children under 14, or under 18 if you get the Child Disability Allowance for them, and the programme they attend must be approved by the Ministry of Social Development — most of the big names are, but it always pays to ask.
What it does not cover is casual babysitting, care by family members at home, or programmes that have not been through MSD approval. And it never arrives in your bank account — Work and Income pays the provider directly, and the provider takes it off your bill.
How much you get, the 2026 rate tables
Both subsidies use the same hourly rate scale, set by two things — your gross weekly family income (before tax) and how many dependent children you have. These are the rates that took effect on 1 April 2026, from the Work and Income rate tables.
| Gross weekly family income (before tax) | Subsidy per hour |
|---|---|
| Under $1,131.00 | $6.72 |
| $1,131.00 to $2,059.99 | $5.36 |
| $2,060.00 to $2,231.99 | $3.75 |
| $2,232.00 to $2,403.99 | $2.09 |
| $2,404.00 and over | No subsidy |
| Gross weekly family income (before tax) | Subsidy per hour |
|---|---|
| Under $1,301.00 | $6.72 |
| $1,301.00 to $2,369.99 | $5.36 |
| $2,370.00 to $2,556.99 | $3.75 |
| $2,557.00 to $2,747.99 | $2.09 |
| $2,748.00 and over | No subsidy |
| Gross weekly family income (before tax) | Subsidy per hour |
|---|---|
| Under $1,457.00 | $6.72 |
| $1,457.00 to $2,643.99 | $5.36 |
| $2,644.00 to $2,867.99 | $3.75 |
| $2,868.00 to $3,090.99 | $2.09 |
| $3,091.00 and over | No subsidy |
The hourly rate is then multiplied by the hours of care you actually use, up to the caps — 20 hours a week for OSCAR in term time, 50 hours a week in the school holidays, and 50 hours a week for the Childcare Subsidy. At the top rate that works out at up to $134.40 a week for term-time OSCAR and up to $336.00 a week for holiday programmes or full-time childcare. To see where your family lands, work out what you’d get.
Who qualifies
There are two tests, and you need to pass both. First, the caregiver test. You must be the child’s principal caregiver, be a New Zealand citizen or permanent resident, be on a low or middle income (the tables above are the definition of that), and be in at least one of these situations:
- working, studying or on an approved training course
- doing an activity Work and Income has asked you to do
- a shift worker who works nights
- seriously ill or disabled
- caring for a child in hospital, or a child you get the Child Disability Allowance for
Second, the child test. For OSCAR, the child must be under 14 (or under 18 with the Child Disability Allowance), normally live in New Zealand, be enrolled at school, and attend an approved OSCAR programme for at least 3 hours a week. One thing that catches people out — if the child’s other parent or caregiver is available to look after them, Work and Income can decline the subsidy.
Term time and school holidays, the 20 and 50 hour rule
This is the most misunderstood part of OSCAR. During school terms the subsidy covers up to 20 hours a week — enough for before and after-school care around a working day. During the school holidays the cap rises to 50 hours a week, because your child suddenly needs care all day. Same hourly rate, very different weekly amounts.
Here is what that looks like across a full year for a family with two children and gross income of $1,250 a week, which puts them on the top rate of $6.72 an hour. They use 15 hours of after-school care a week during the 40 school weeks — the subsidy covers $100.80 a week, or $4,032 across the year. In the holidays their children go to a full-time holiday programme, 45 hours a week for 8 of the 12 holiday weeks — the subsidy covers $302.40 a week, another $2,419. Total help for the year: about $6,450, paid quietly off their childcare invoices.
The Childcare Subsidy for under 5s
The Childcare Subsidy is the pre-school version of the same help, using the same income bands and hourly rates. It covers children under 5 (or under 6 with the Child Disability Allowance, and 5-year-olds who cannot start school yet because their school uses cohort entry) attending licensed early childhood education — daycare centres, kindergartens, playcentres, kōhanga reo and approved home-based care.
The hours work differently from OSCAR. If you are working, studying, in approved training or covered by one of the other situations in the caregiver test, you can get up to 50 hours a week, all year round. If you are not, you can still get up to 9 hours a week. And if your child is 3 or 4, the subsidy stacks with 20 Hours ECE — the free hours come first, and the subsidy can help with hours on top of those, though not the same hours twice.
How to apply
- Pick an approved provider first. The subsidy can only be paid to a licensed early childhood service or an MSD-approved OSCAR programme, so confirm that before you enrol.
- Apply 3 to 4 weeks before care starts. Payments run from when care starts or from the day Work and Income receives your application, whichever is later. Apply late and the gap comes out of your pocket.
- Fill in the Childcare Assistance application. One form covers both subsidies. Existing Work and Income clients can apply through MyMSD or SmartStart online; new clients complete the form and submit it online, by email or at a service centre. First-time applicants need to verify their identity.
- Your provider fills in their part. The form has a section the childcare centre or programme completes, confirming hours and fees.
- Tell Work and Income when things change. Income, hours, provider, address — changes can move your rate up as well as down.
FamilyBoost, 20 Hours ECE and the subsidies compared
Three different schemes help with childcare costs in New Zealand, run by three different agencies, and they are constantly confused with each other. The short version: 20 Hours ECE is universal, FamilyBoost is a fees refund for early childhood only, and the Childcare and OSCAR Subsidies are the income-tested hourly payments this guide covers. FamilyBoost does not cover school-age care — it is defined by Inland Revenue as help with early childhood education fees, so OSCAR fees do not qualify.
| Scheme | Who it covers | What you get | Income tested |
|---|---|---|---|
| Childcare Subsidy / OSCAR Subsidy (Work and Income) | Under 5s in licensed ECE; school-age children under 14 in approved OSCAR programmes | $2.09 to $6.72 an hour, paid to the provider, up to 50 hours a week (20 in term time for OSCAR) | Yes — see the tables above |
| FamilyBoost (Inland Revenue) | Early childhood fees only — does not cover OSCAR or school-age care | A refund of up to 40 percent of ECE fees, capped at $1,560 a quarter, claimed through myIR each quarter | Yes — starts reducing above $35,000 of household income a quarter, gone at $57,286 |
| 20 Hours ECE (Ministry of Education) | All 3 and 4-year-olds, and 5-year-olds not yet at school, at teacher-led services | Up to 20 hours a week (max 6 a day) of ECE with no fees charged for those hours | No — universal |
They can be combined. A working family with a 3-year-old might use 20 Hours ECE for the first 20 hours, the Childcare Subsidy toward the hours beyond that, and still claim FamilyBoost on the fees they actually paid after the subsidy came off.
What school holiday programmes cost
Full-day holiday programmes in New Zealand commonly advertise somewhere between $40 and $70 a day depending on the operator, the area and what is included, so a full 10-week holiday year can run well into the thousands per child. At the top OSCAR rate the subsidy covers $6.72 an hour of that — up to $336 a week — which for many families turns a $300-a-week programme into a much smaller bill. We break down typical costs, what to look for in a programme, and how to check it is OSCAR-approved in our guide to school holiday programmes, costs and how to choose one. For this year’s holiday dates, see our public holidays and dates hub.
Common questions
Is the Childcare Subsidy or OSCAR Subsidy taxable?
No. It is not taxable income, and it never passes through your hands — Work and Income pays your provider directly.
Can the subsidy be backdated?
Not in any useful way. Payments start from the date care starts or the date Work and Income receives your application, whichever is later. Fees you have already paid stay paid, which is why the 3 to 4 week head start matters.
Can I study and get the Childcare Subsidy?
Yes. Studying or being on an approved training course counts the same as working, for both subsidies. Students can also apply through StudyLink, which uses the same childcare assistance rules.
How do I stop the subsidy when I no longer need it?
Tell Work and Income through MyMSD or on 0800 559 009 when your child stops attending or your situation changes. The payment stops from that point — leaving it running after care ends can create a debt to pay back.
Why would Work and Income suspend my childcare subsidy?
The usual reasons are attendance (your child stopped going, or absences piled up), a change in your income or work situation, the provider losing its approval, or an overdue review on your file. The suspension letter should say which — if it does not, ring and ask.
Can I get the Childcare Subsidy and Sole Parent Support at the same time?
Yes. Childcare assistance is extra help, not a benefit replacement, and it is commonly paid alongside Sole Parent Support and other main benefits. The hours depend on your situation — up to 9 hours a week of Childcare Subsidy if you are not working or studying, more if you are.
Does the Childcare Subsidy apply to any daycare?
No. The service must be a licensed early childhood service or approved home-based care, and holiday or after-school programmes must be MSD-approved for OSCAR. Providers know their own status, so just ask before you enrol.
Sources
- Work and Income — OSCAR Subsidy
- Work and Income — Childcare Subsidy
- Work and Income rate tables — childcare assistance, current rates
- Inland Revenue — FamilyBoost
- Ministry of Education — 20 Hours ECE
Sorted your childcare costs, or hit a wall with Work and Income? Tell us how it went in the comments — your experience helps the next family.
Working on a public holiday? See our full guide to New Zealand public holiday dates, pay rules and long weekends.