Starting April 1, some New Zealanders will benefit from increased financial assistance through a variety of government payments, encompassing benefits, superannuation, minimum wage, Working for Families and Best Start tax credits.
Conversely, some individuals will experience a financial setback due to new levies, including an increase in the trust tax rate and the introduction of road user charges for electric vehicles.
The rises
- The adult minimum wage will have a 2% increase, reaching $23.15 an hour.
- Working for Families, also known as the Family Tax Credit, will see an $8 weekly increase post-tax for the eldest child, rising from $136.94 to $144.30, and a boost from $111.58 to $117.56 for subsequent children.
- The Best Start tax credit will see a $4 increase, moving from $69 to $73.
- Amendments to interest deductibility will permit landlords to claim 80% of their interest expenses against their tax obligations.
- The Sole Parent Support benefit will rise from $472.79 to $494.80 weekly, while a couple with one or more children will collectively receive $635.10, up from $606.86.
- Pensioners living alone will experience an increase in New Zealand Superannuation to $1,038.94 fortnightly, and qualifying couples will receive $1,598.36, marking increases of $46.20 and $71.68 respectively. As of June 2023, there were 883,239 superannuitants.
The main benefits will undergo an annual general adjustment, resulting in a rise ranging between 4.66% and 5.28% . As of the week ending March 15, there were 370,977 beneficiaries.
For instance, a single person without children receiving Jobseeker Support will see their benefit increase from $337.74 to $353.46 weekly. A couple will receive $601.46 weekly or $300.73 individually, up from $574.70 or $287.35 respectively.
Tax rises:
- Road user charges will be introduced for full or battery electric vehicles at a rate of $76 per 1000km, and for plug-in hybrids at $38 per 1000km.
- The trust tax rate will rise from 33 per cent to 39 per cent to align with the top personal tax rate, with exceptions for trusts earning less than $10,000 annually under government proposals.
- Additionally, the government plans to augment tax revenue by approximately $575 million yearly from commercial and industrial property owners by disallowing them to deduct depreciation as an expense starting April 1.