Saving money these days can be challenging as products and services increase each year. In line with that, the NZ government has set some benefits increases this April to help thousands of Kiwis.
Read along and see which benefits apply to you.
According to the Ministry of Business, Innovation and Employment (MBIE), around 160,600 people aged 16 to 64 were paid the minimum wage in 2021, which is about 7.8% of all wage earners in New Zealand.
2022 is a great year for Kiwi workers as the adult minimum wage will increase from $20 to $21.20 per hour. If you're on a minimum wage and work 40 hours a week, this means you'll get an extra $48 weekly or almost $2500 annually.
Those who are just starting out and training will have their minimum wage increase from $16.00 to $16.96 per hour.
If you're an employee, talk to your payroll team to make sure that they are informed and ready to implement the necessary changes. If you're an employee who is on starting out or training wages, now is a great time to inquire when you will be eligible to be on the adult rate.
Public transport fares will be cheaper starting 1 April to 30 June 2022. The funding will be given to the local government to implement the half-price discount on fares. The discount will also include key additional services, including Capital Connection and Total Mobility.
The temporarily discounted fares are part of the government's cost of living relief package. Aside from discounted fares, it also includes the temporary fuel excise duty cut of 25 cents/litre for three months and a discount in Road User Charges on all legislated rates from April to July 2022.
The Working for Families Tax Credits will increase, which means more than 300,000 families’ incomes will increase by around $20 a week starting April 1. The increase is expected to lift thousands of children out of poverty.
Apart from that, the abatement rate for the Family Tax Credit will also increase from 25% to 27%. This means that families with an income less than $40,000 would benefit the most with an average increase of $26 per week.
There will be an increase in superannuation per fortnight. The increase will be by $52 for a single person and $80 for a couple. The amount a person would receive will depend on their living situation and tax rates.
Other benefits and payments Kiwis should expect to increase in April:
See more details on the Work and Income website. Please note that when your main benefit increases, there's a chance that it will also affect some of your other payments like Temporary Additional Support or Accommodation Supplement. Make sure to check your payments by logging into MyMSD or calling Work and Income's Service Express self-service line to inquire.
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