1 April changes to lift incomes
Over a million New Zealanders will receive a little extra to help with the cost of living as a result of our 1 April changes.
Around the world, inflation is causing costs to rise and we’re feeling it here at home. In tough times, we need to support those who are struggling the most to make ends meet. While there’s no easy fix, these changes will see increases to the minimum wage, superannuation, veteran’s pensions, benefits, as well as family and student support.
Here's what our changes mean for Kiwis:
Families
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345,000 families better off through Working for Families Tax Credits
Seniors
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880,000 seniors get a boost to Superannuation
Students
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52,000 students see a boost in Student Allowance and Student Loan Living Costs
Caregivers
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10,000 more children eligible for subsidised childcare
Beneficiaries
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Main benefits increase by the rate of inflation
Workers
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Approximately 223,000 workers receive a wage rise as minimum wage increases to $22.70
Families
We’re providing further support to help ease the pressure on whānau. From 1 April, 345,000 families, including 646,000 children, will be better off through increases to Working for Families Tax Credits. This includes a bump to Best Start Payments, which help parents with the costs of a newborn, taking these to $69 per week. We’ve also increased the eldest child and subsequent child rates of the Family Tax Credit.
Seniors
Superannuation is rising for 880,000 seniors, including 5000 veterans on the Veteran’s Pension. With the changes rolling out on 1 April, the amount paid to a couple receiving Superannuation or the Veteran’s Pension has increased by $326.68 total per fortnight since 2017, and the rate for a single person living alone has increased by $212.34 per fortnight.
Students
We’re boosting the student allowance and student loan living costs payments by around $20 extra each payment. This bump will make everyday life more affordable for over 50,000 tertiary students, so they can focus on what’s important – their studies.
Parents and Caregivers
More than half of New Zealand families with kids will be eligible for subsidised childcare assistance, from 1 April, through our expansion of the income thresholds. We know childcare is one of the biggest costs for working families – that’s why we’re making it more affordable for many low and middle income families. These changes mean 10,000 more children will be eligible for subsidised childcare.
Beneficiaries
We’re increasing main benefits by the rate of inflation from 1 April to help ease cost of living pressures for those on Government support. A couple with children who are receiving a main benefit will now be better off by $256 per week on average than they were in 2017, and a sole parent is better off by $180 per week.
Workers
Approximately 223,000 workers will receive a wage rise as a result of the minimum wage increasing to $22.70. This brings the minimum wage in line with inflation, ensuring thousands of New Zealanders do not go backwards. Also, from 1 April, the nurses pay agreement will see 8,000 community nurses receive a pay increase of up to 15%.
While these increases won’t solve everything, they will help to ease some of the pressure – and right now, every bit counts when making ends meet.
We know there’s still more to do, but our record over the last five years shows we’re committed to doing what’s right for all New Zealanders, and these 1 April changes are the next step.
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