When Chris Hipkins took on the job of Prime Minister, he said bread and butter issues like the cost of living would be the Government’s top priority – and this week, we’ve set out extra support for families and businesses.
Here is the first step that we've taken:
The Government is extending our fuel tax cut, our reduction on road user charges as well as half price public transport until the end of June 2023. Households across New Zealand are thinking hard about their budgets, and as a Government, we’re focused on what we can do to help.
The fuel tax cut will reduce the cost of an average 60 litre tank of petrol by $17.25 and half price public transport fares saves an average person who pays two $5 fares a day $25 a week.
Transport is one of the biggest expenses for households and this is one way we can help to reduce costs and ease some of the pressure that New Zealanders are facing right now. By cutting transport costs we’re also helping to reduce the fuel burden on businesses – keeping the cost of food and essential goods lower across the board, which is good for everyone.
In the big picture, New Zealand’s economy is in a better position than many other countries. While this is important, there’s no question that the cost of living crisis is continuing to bite as international pressures drive up inflation and prices.
We know people are worried about paying their grocery bills and paying their mortgages. The recent bad weather in Auckland and Northland further exacerbated this – putting extra stress and financial pressure on households and businesses.
Cutting transport costs is a practical way we can help with the challenges families and businesses are facing right now. Of course, it is just a start, a first step in dealing with some of the persistent cost pressures facing New Zealanders. While this alone won’t solve the cost of living crisis, it will make a difference - and right now, every bit helps.
Find out more about how we’ve supported New Zealanders with the cost of living, here.
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