New Zealand Prime Minister Christopher Luxon has stood by his government’s targeted cost-of-living assistance in light of surging fuel prices. Luxon highlighted that while global energy markets are beyond the country’s control, it is crucial to aid those most impacted. He emphasized the direct impact of Middle East conflicts on fuel price hikes in New Zealand, exerting financial strain on households and businesses nationwide.
Luxon stressed the necessity for precise, temporary aid for those in need, cautioning against broad measures that could exacerbate inflation. To address the situation, the government announced a temporary increase in the in-work tax credit, benefiting approximately 143,000 low- and middle-income working families with an extra $50 weekly to mitigate rising fuel expenses starting early April. This support will be in place for a year or until fuel prices stabilize, extending eligibility to an additional 14,000 families at a reduced rate.
As part of the broader initiative, over a million New Zealanders will witness enhancements in existing government support payments. Nearly one million superannuitants will receive augmented NZ Superannuation, with a married couple’s payment increasing by over $50 fortnightly. Additionally, around 280,000 families will gain from higher Family Tax Credits, potentially receiving up to $1,050 extra annually, while students and beneficiaries could see a $20 increase per fortnight. The government is also modifying Working for Families to encompass about 140,000 more households and boosting KiwiSaver to facilitate faster savings for a first home or retirement.
Luxon reiterated the government’s strategy, emphasizing their focus on providing targeted support within New Zealand’s means despite the uncontrollable global fuel prices.
