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1 April changes to lift incomes

We’re boosting incomes and reducing cost pressures for Kiwis, with a suite of changes coming into force on 1 April that will see the majority of New Zealand families better off.

The rising cost of living, driven by worldwide inflation and the war in Ukraine, is making things tough for many Kiwis right now. While there’s no easy fix, we’re taking a range of actions to ease the pressure – and our 1 April changes are the next step.

Here’s who benefits from our changes:

Families

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More than 340,000 families $20 a week better off on average

Seniors

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Superannuation boost of $52 a fortnight for single people and $80 for couples

Students

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$25 boost to Student Allowance and Student Loan Living Costs

Caregivers

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Boost to Foster Care Allowance and Orphans and Unsupported Child benefits

Minimum wage workers

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$48 extra a week for fulltime workers

Beneficiaries

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Up to $35 extra each week

Commuters

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Public transport fares halved, on top of reduced road user charges and fuel tax cut

Families

Kiwi families

From 1 April, we’re rolling out extra support for low and middle income families. This includes improvements to Working for Families, which will see more than 340,000 families better off by an average of $20 per week, with increases to the Family Tax Credit and Best Start, which helps parents with the costs of a newborn. We’ve also expanded Childcare Assistance, so more Kiwi families can access this support.

Seniors

Seniors

Older New Zealanders will also benefit from our 1 April changes. People on Superannuation will see their incomes lift by $52 a fortnight for a single person and $80 for a couple. This will lift further when the Winter Energy Payment starts again in May, providing an extra boost to help with heating costs through the colder months.

Students

Students

Both the Student Allowance and Student Loan Living Costs will increase by $25 from 1 April. This will help to ease the pressure for more than 100,000 students, so they can focus on what’s important – their studies.

Caregivers

Caregivers

The Foster Care Allowance and the Orphans and Unsupported Child benefits will increase from 1 April, to help some of our most vulnerable tamariki and the people who care for them.

Minimum wage workers

Minimum wage workers

The minimum wage will increase to $21.20 per hour from 1 April – meaning fulltime minimum wage workers will earn an extra $48 a week.

Beneficiaries

Beneficiaries

People receiving main benefits will see their payments increase by up to $35 a week. This is on top of the $20 increase delivered in 2021, and together, these increases represent the biggest benefit boost in a generation.

Commuters

Commuters

Alongside our cuts to fuel tax and road user charges, we’re also slashing public transport fares in half, to counter global fuel price spikes caused by the Ukraine invasion. These cheaper bus, train and ferry fares come into effect from 1 April, helping to cut transport costs for Kiwi commuters.

Since the day we came into Government, we’ve worked hard to lift wages and reduce cost pressures on Kiwis. Since 2017, we’ve introduced free lunches in schools, made doctor’s visits cheaper, boosted police, nurses’ and teachers’ pay, expanded Working for Families and more to make things easier for New Zealanders. Our 1 April changes build on this work, providing extra support to those who need it most.

There’s no silver bullet to fix the cost of living pressures – but we know that, when taken together, these measures will help to make a difference. They’re the latest move in our plan to ensure low and middle income New Zealanders aren’t left behind.


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