- Hon Nicola Willis
Superannuitants, working families, students and beneficiaries are among the New Zealanders who will receive additional support from 1 April, as conflict in the Middle East continues to impact Kiwi wallets, Finance Minister Nicola Willis says.
"The global fuel-price surge is hitting hard at home, causing a cost-of-living headache for many New Zealanders. While the Government can't afford to ease all the pain, we are determined to keep progressing sensible, measured changes that provide some relief.
On 1 April this week, policy changes and annual adjustments will increase financial support for more than a million New Zealanders.
- Around 960,000 Kiwis receiving NZ Superannuation and Veteran's Pension will get increased payments. NZ Superannuation for a married couple who both qualify will lift more than $50 to $1,708 a fortnight, an increase of over $180 since the 2023 election.
- Around 280,000 low-to-middle-income families will receive an increase in the family tax credit. Eligible families with one child will receive an extra $400 a year, rising to $720 for families with two children and $1,050 with three.
- As announced last week, an increase to the in-work tax credit will result in 143,000 working families receiving a further $50 boost per week for up to a year, as part of the Government's temporary, targeted support to help with fuel costs. A further 14,000 families will receive up to $50 per week.
- In addition, Budget 2025 changes to the Working for Families abatement threshold come into effect from 1 April, and will support around 142,000 families with a boost of $14 per fortnight on average.
- Around 52,000 students will receive additional assistance. A single person over 24 receiving the Student Allowance will gain an additional $22 a fortnight.
- Over 435,000 working age beneficiaries will get increased support. A single person over 25 years old on Jobseeker Support will receive an additional $22 a fortnight. A couple with children will receive an additional $40 a fortnight (on top of the family tax credit increase).
"These changes from 1 April build on existing cost-of-living support.
"Over 86,000 families have received the FamilyBoost childcare tax credit and FamilyBoost will continue to support eligible low-to-middle-income families with up to $120 per week towards their childcare costs.
"And tax relief delivered in July 2024 will continue to benefit around 1.9 million households by $60 a week on average.
"The Government is acutely conscious that the conflict in the Middle East is causing pain for Kiwis at the pump, and is leading to increased costs for businesses, goods and services across our economy. We have been upfront in acknowledging that the fall-out from these global events is likely to drive New Zealand's inflation rate higher and our growth rate lower than previously forecast.
"We know that responding with large, untargeted government spending programmes could make things worse for Kiwis by adding even more pressure to inflation and debt. We are making careful choices in order to protect New Zealand's economic future.
Nicola Willis says that April 1 also marks the start of changes to KiwiSaver to support Kiwis to save more for their first home and retirement.
"Default employee and employer contribution rates will increase from 3 per cent to 3.5 per cent. This means Kiwis who choose to contribute more will be matched by their employers and able to grow their savings further.
"We recognise that many Kiwis will not feel able to make that choice right now. We have safeguarded their flexibility by ensuring KiwiSavers will be able to opt back down to the current 3 per cent contribution rate, if they choose.
"These KiwiSaver changes are all about lifting savings and helping Kiwis become more financially secure in the longer run," Nicola Willis says.
"Every choice we make now carries longer-term consequences. The Government will continue to be disciplined with every decision we make.
"While we can't control global oil prices or overseas conflicts, we can take steps to ease the pressure on working families with targeted, responsible support.
"Sticking to our careful economic plan is how we can best get New Zealand and New Zealanders through this latest global shock while protecting New Zealand's future."
