Monthly Archives March 2016

Benefit and Superannuation Payments Set to Rise

March 31, 2016 New Zealand Taxation

With the start of the new financial year the New Zealand government is implementing the first non-inflation increase to welfare payments in over four decades.

On April 1st several new regulations will come into effect, raising the incomes of low-earning families, beneficiaries, and retirees.

Beneficiaries with dependent children are set to see their weekly payout increase by NZD 25, while Working for Families payments will rise by up to NZD 24.50, and Childcare Assistance will be hiked from NZD 4 per hour to NZD 5 per hour.

The increase in welfare payments are the first non-inflation hikes to be enacted over the last 43 years.

The increase in benefit payouts is balanced by stricter work requirements, with parents with dependent children now being required to return to work for 20 hours...

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Consumer Confidence Remains Stable, For Some

March 21, 2016 New Zealand Finance

New Zealand consumers have remained generally optimistic throughout 2016, although wealthy consumers and rural consumers are seeing sharp declines in confidence.

Consumer confidence fell slightly in New Zealand over the three months ending March 2016, falling by 1.1 points to a level of 109.6 points on the latest McDermott Miller NZ Consumer Confidence Index released on March 21st.

While the Index does indicate a minor fall in confidence, overall buoyancy among consumers remained “firmly optimistic”.

However, it was also noted that there are sharp differences in confidence among different social and regional groups.

Metropolitan consumers saw an increase in confidence of 2.6 points, while secondary and rural consumers experienced declines of 3.7 points and 8.3 points respectively.

Sim...

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New Zealand GDP Shows a Steady Rise

March 17, 2016 New Zealand Finance

Somewhere in New ZealandOver the course of 2015 the GDP of New Zealand rose by 2.5 percent.

On March 17th Statistics New Zealand released its quarterly report on GDP in New Zealand, showing that for the 3 months ending December 2015 the Gross Domestic Product in New Zealand rose by 0.9 percent.

The rise in the Gross Domestic Product for New Zealand over the course of the 2015 year is estimated to be 2.5 percent.

The strong growth in the 4th quarter of the year was attributed to a 0.8 percent increase in the service industries.

It was noted that over the three months New Zealanders saw a marked increase in spending on restaurant and ready-to-eat meals, accommodation, and international air passenger services.

However, despite the overall positive results, it was also noted that business investment dropped by 2...

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Stats NZ Refines New Inflation Measure

March 14, 2016 New Zealand Finance

Statistics New Zealand is stepping closer to a new method of calculating inflation, having decided on the treatment of debts, second hand goods, and how different income groups will be grouped.

Late last week Statistics New Zealand issued a statement confirming that it has made some decisions on the process which will be used to calculate “household living-cost price indexes” (HLPI), a new alternative for the calculation of inflation in New Zealand.

The decisions have come following a round of public consultation on methodologies to create a method of calculating inflation more accurately in New Zealand.

When then HLPIs begin to be constructed later in 2016 they will be based on spending an expenditure of different income groups, namely, suppernnuitants, Maori, beneficiaries, and fiv...

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