The Best Start Tax Credit will now be income tested from the first year, for babies born on or after 1st April 2026.
This credit used to be universally available to all babies for their first year, then income tested in years two and three.
Babies born before 1st April will continue to receive their full Best Start entitlement for their first year, with no income testing.
The annual rate will also increase on 1st April 2026 from $3,838 to $4,041.
If you have any queries please contact your client manager, they will be happy to assist.