Policy changes and threshold adjustments taking effect from 1 April will make a difference for the better for many New Zealanders.

Among the many who will see improvements are workers dependent on the minimum wage, low income families, students, beneficiaries, businesses, the science and research community, and charities.

The changes will: 

• help children living in around 2,400 families, as the minimum family tax credit increases by $416 per year to $18,460 
• lift the minimum wage to $12 an hour, including for sixteen and seventeen year olds after the first 200 hours or three months they have worked 
• support tertiary students and beneficiaries with a 3.18 per cent increase to their student allowances and to benefits under the annual CPI adjustment. For students this comes on top of a ten per cent lift in the parental income abatement threshold in January 
• help businesses, by dropping their tax rate from 33 to 30 per cent 
• help members of KiwiSaver retirement schemes with the new employer contributions of one per cent scaling up an extra one per cent per annum to reach four per cent in 2011. This is supported by the tax credit for employers of up to $20 per week 
• provide 15 per cent tax credits on research and development investments by business 
• benefit charities through the removal of the $1890 cap on charitable donations eligible for a tax rebate of 33.3 per cent. This will further strengthen NGOs, which are also to benefit from the government's major funding boost of $446 million to the sector over four years 
• support the 510,000 older New Zealanders receiving NZ Superannuation or the Veterans Pension, with the rise in their payments indexing them to 66 per cent of the average ordinary wage. For a couple this is $34 a week more then they would have received under the previous National Government's formula to cut Superannuation.

"The Labour-led Government works to constantly to lift living standards, boost economic growth, and support communities - including through the NGO sector. The 1 April changes will make a positive difference for many New Zealanders," Helen Clark said.

Ministers' statements associated with 1 April 2008

• Employers urged to follow new Minimum Wage: Under the April 1 changes, many 16 and 17 year olds who are currently on the youth rate will automatically be entitled to the new adult minimum wage of $12 an hour. Trevor Mallard, Labour Minister. 1 April, 2008
• Tax changes boost to charitable organisations: new tax rules on charitable giving which came into effect 1 April. Ruth Dyson, Community and Voluntary Sector Minister. 3 April, 2008
• Delivering for Pacific communities on 1 April: Delivering for Pacific communities and all New Zealanders on 1 April. Luamanuvao Winnie Laban Pacific Island Affairs Minister. 31 March, 2008
• Company tax rate falls from 1 April. Company tax rate dropping to 30 per cent, effective 1 April -- encourages re-investment of a greater share of business profits in new technologies and in building on the skill base of employees. Michael Cullen, Finance Minister. 31 March, 2008
• Cleaners in govt departments get added protections. The government is supporting moves to raise workplace standards and protections for cleaners in the property services industry, with government departments to adopt a set of principles for all new contracts from April 1. Trevor Mallard Labour Minister. 28 March, 2008
• New era for research and development. More private research and development anticipated -- Labour-led government tax credit initiative comes into effect 1 April. Pete Hodgson Research, Science and Technology Minister. 28 March 2008
• Major step forward on KiwiSaver from 1 April. Employer contributions will be a vital part of KiwiSaver’s success, while the tax credits to support these contributions will help make the moves affordable for business. Michael Cullen, Finance Minister. 27 March, 2008
• Benefits and student allowances increase: Benefits and allowances will increase from 1 April 2008. Ruth Dyson, Social Development and Employment. 27 March, 2008
• Change to KiwiSaver Employer Tax Credit calculation: Ministers today announced a change to the KiwiSaver employer tax credit process in order to ensure that all employers receive up to their full $20 a week tax credit for each KiwiSaver of complying fund member. Michael Cullen, Finance, 27 March, 2008