31 March, 2011
Benefits, Superannuation increase from tomorrow
Social Development Minister Paula Bennett says benefits and superannuation will increase for more than one million New Zealanders from tomorrow.
“We’ve locked the Annual General Adjustment into legislation to give certainty,” says Ms Bennett.
Main benefits, Superannuation and Student Allowance rates, all increase from April 1 to reflect increases to the Consumer Price Index.
Main benefits will increase by 3.75% from 1 April 2011, this includes the GST compensation component of 2.02% added in 1 October 2010.
“Under this Government, superannuitants in particular have benefited, with married rates increasing by 6.85 percent over the last year,” says Ms Bennett.
This ensures married rates continue to equal 66% of the average net wage, compensating superannuitants for all inflation - including the GST rise - and capturing the benefits of income tax cuts last October.
Since October 2008, the married rate of NZ Super has increased from $439.80 per person a fortnight to $522.96 – an increase of $83.16 or 18.9 per cent.
Fortnightly payments, net after tax at M rate
|Rate before 1/4/10||Rate from 1/10/10||Rate from 1/4/11||Total increase since 1/4/10|
|Single living alone||$636.24||$667.50||$679.84||$43.60 (up 6.85%)|
|Single sharing||$587.30||$615.34||$627.56||$40.26 (up 6.85%)|
|Married (each get)||$489.42||$511.06||$522.96||$33.54 (up 6.85%)|
*the amounts include Temporary GST assistance
Note: Taken together, the two rounds of increases mean that NZ Super payments will have increased by 6.85 per cent this year. This more than covers all inflation, including the one-off GST increase, which totalled 4 per cent in calendar 2010.
For more information visit www.msd.govt.nz