Working for Families gets cost of living boost
Putting more money in the pockets of hard-working families is a priority of this Coalition Government, starting with an increase to Working for Families, Prime Minister Christopher Luxon says.
“We are starting our 100-day plan with a laser focus on bringing down the cost of living, because that is what is hurting families the most right now,” says Mr Luxon.
“Six years of Labour has seen the cost-of-living crisis cause real pain in families who are working hard but feel like they are going backwards. New Zealanders up and down the country are struggling to pay for their groceries, mortgages and rents.
“Cabinet has confirmed that, as required by the Income Tax Act, Working for Families will be adjusted to compensate for the high inflation wreaking havoc on families’ budgets over the past year.
“Family Tax Credit rates will increase from $136 to $144 per week after tax for the eldest child, and from $111 to $117 per week for a subsequent child. The Best Start tax credit rate increases from $69 to $73 weekly after tax. These changes will come into effect on 1 April 2024.
“Families have been feeling the impacts of the cost-of-living crisis, and this increase will be a welcome boost to the back pockets of those who most need it.
“The cost of these changes is $769 million over four years and is already accounted for in the Pre-Election Fiscal Update (PREFU). Increasing Working for Families is just one part of the Coalition Government’s plan to address the cost of living.
“As part of our 100-day plan the Government will also focus the Reserve Bank on a single mandate of reducing inflation.
“The previous Government gave the Reserve Bank multiple priorities which meant it was not solely focussed on keeping inflation at target.
“These measures will all help New Zealand families deal with the cost of living.”