Benefits, Student Allowances, Nz Super And War Pensions To Increase

  • Roger Sowry
Social Services, Work and Income

New Zealand Superannuation, benefit payments, student allowances and war pensions will have a small increase from April 1, said the Hon Roger Sowry, Minister of Social Services, Work and Income.

The increase of 0.37% in the net rates equates to the increase in the cost of living for the year to December 1998 as measured by the Consumer Price Index (CPI). Changes to the NZ Superannuation rate also reflects the legislative changes made in October last year.

"The low inflation rate is good news - the minimal change in CPI means consumers purchasing power has been maintained," Mr Sowry said.

Examples of the increases in after-tax weekly rates are:

for a married superannuitant 60c to $162.79 or up $1.20 for a married couple to $325.58
for an unemployed person, or a full-time student living away from home aged 25 or over, up 55c to $147.89
for a married couple on the community wage with no children, 90c to $246.46
for a single person over 19 years receiving the invalids benefit up 68c to $184.85
for a sole parent with one child up 78c to $211.82
for a war disablement pensioner receiving 100% disability rate, up 54c to $146.15
The net fiscal cost of these increases is about $29 million a year.

"Under the adjustment formula in legislation, rates for single superannuitants and single veterans pensioners will not increase. Tax cuts on July 1 last year benefited these people to a greater degree than married superannuitants."

"Single superannuitants living alone benefited by $2.17 per week and single sharing by $1.51 a week - whereas a married person whose source of income was Superannuation received just 25c a week more as a result of tax cuts."

The legislation provides for single superannuitants living alone to receive 65% of the married rate, from April 1 they will be receiving 65.3% of the married couple rate.

The legislation also provides for single superannuitants sharing accommodation to receive 60% of the married rate, they will now receive 60.1% of the married couple rate.