The Government has confirmed increases to a number of tax credits, which Prime Minister Christopher Luxon says will be a "welcome boost" to those feeling the cost of living crisis the hardest.
Luxon on Monday afternoon said that Cabinet had confirmed Working for Families tax credits will be adjusted to "compensate for the high inflation wreaking havoc on families budgets over the past year". This is required by the Income Tax Act, he said.
The 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 will jump from $69 to $73 weekly after tax.
These changes will come into effect on April 1. The cost of the changes over four years is $769 million and has already been accounted for in the Pre-Election Economic and Fiscal Update, the Prime Minister said.
"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," Luxon said.
"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."
Luxon said the Government is also wanting to focus the Reserve Bank on a single mandate of reducing inflation. Legislation doing that will be introduced into the House next week.
Finance Minister Nicola Willis announced that the Half-Year Economic and Fiscal Update will be delivered on December 20. This includes the so-called 'mini Budget'.
