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 per week when the child turns 3, while currently parents are required to do 15 hours per week only after the child turns 5.
In addition, from April 1st the adult minimum wage will be increased by 3.4 percent from NZD 14.75 per hour to NZD 15.25 per hour.
New Zealand Superannuation payments will be raised by 2.7 percent.