National is providing cost of living support for more than 1.5 million Kiwis.

Responsible economic management matters most when the world is volatile and unpredictable. By fixing the basics in the economy, we have been repairing the post-covid damage done by Labour:

• We’ve reined in wasteful spending saving taxpayers $43b to date in unnecessary expenses
• This has brought down interest rates, meaning Kiwis’ average mortgage repayments are down by as much as $10,000
• We’ve lowered taxes, and
• The economy is expected to grow, on average, 2.7% each year over the next four years, creating 220,000 jobs. Wages will grow faster than inflation in each of the next four years.

There’s no question though that the Iran conflict is impacting New Zealand. While we entered this challenging time in a stronger position than we would have been if this had happened two years ago, the impacts are still tough for people. Understandably, many New Zealanders have heightened concerns about rising fuel prices and the pressure that puts on their household budgets.

Due to ongoing global supply-chain disruptions, fuel and other prices are likely to remain higher, and possibly keep increasing, for a longer period.

The situation is serious enough that specific Government support, alongside other cost of living relief that was already occurring, is necessary. However, support will be disciplined and targeted to people in the most need. This is because we are very conscious that getting economic management wrong now will have long-lasting consequences that are difficult to unwind.

We saw this in the aftermath of Covid where short-term decisions led to debt reaching $120b and inflation hitting a 32 year high. This saw mortgage rates and other prices skyrocket. Kiwis are still grappling with the effects of that today.

National wants to ensure those mistakes are avoided.

Cost of Living Relief - April 1 Changes

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.

Working for Families abatement thresholds 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).

Cost of living relief - rising fuel costs

We are also providing support to those Kiwis who need it most in the face of rising fuel costs. We can’t control global oil prices or overseas conflicts, but we can take steps to ease the pressure on working families with targeted, temporary and fiscally responsible support.

$50 extra per week of working families

An increase to the in-work tax credit will see 143,000 working families receiving $50 extra per week for up to a year. A further 14,000 families will receive up to $50 per week. The increase will be temporary, lasting for one year or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks

30 per cent increase to mileage rates for home and community support workers

Home and community support workers will receive a temporary 30 per cent increase to their mileage rates. Mileage rates will rise from 63.5 cents to 82.5 cents per kilometre, to help offset the cost of rising fuel prices. The increase will remain in place for up to 12 months, or until the price of 91 octane petrol falls below $3 per litre for four consecutive weeks

These carers play a critical role in delivering essential services to some of our most vulnerable New Zealanders, and we deeply value the meaningful work they carry out in communities across the country. This help is targeted and temporary.

Increased support to help ease fuel cost pressures for veterans needing to travel for treatment.

For veterans travelling under 200kms for a round trip in a private vehicle, the reimbursement rate will increase from 62 cents per kilometre to 91 cents per kilometre.  For veterans travelling more than 200kms in a private vehicle, the reimbursement rate will increase from 27 cents per kilometre to 41 cents per kilometre.