Source: New Zealand Government
The Government is focused on growing the economy to create jobs, lift incomes and help Kiwis with the cost-of-living, Prime Minister Christopher Luxon and Minister of Finance Nicola Willis say.
“We know things are still tough for a lot of families and that’s why we are focused on growing the economy to help Kiwis get ahead,” Mr Luxon says.
“The economy is expected to grow on average 2.7 per cent per year creating 240,000 jobs over the next four years, but in the short term we are pulling every lever we can to help Kiwi families with the cost of living.
“Today we have announced that we are scrapping surcharges at the till. New Zealanders are paying up to $150 million in surcharges every year. That’s money that could be saved or spent elsewhere,” Mr Luxon says.
“This week marks one year of tax relief meaning the average household is $1,560 better off,” Nicola Willis says.
“We have also introduced FamilyBoost, which with the latest expansion gives families up to 40 per cent off their childcare costs. We have removed the Auckland fuel tax, introduced 12-month prescriptions, increased the rates rebate for 66,000 seniors and increased Working for Families payments.
“Most importantly we have stopped wasteful government spending and got inflation under control. Inflation has dropped from a peak of 7.3 per cent under the previous government to 2.7 per cent under ours.
“This has meant lower interest rates, so a family re-fixing a $500,000 mortgage today will save around $320 per fortnight compared to September 2023. We have also driven rent inflation down.
“Long term, we know the most important thing we can do is to increase wages, and the way to do that is by growing the economy.
“That is why this Government is focusing on five key areas: developing talent, ensuring business settings are competitive, promoting global trade and investment, supporting innovation, technology and science; and providing a pipeline of infrastructure for growth.
“Ultimately, the way to grow people’s incomes is to grow the economy. That is why this Government is working so hard to do just that,” Nicola Willis says.
