Source: Radio New Zealand
The policy was estimated to cost $373 million if it ran for a full year. (File photo) RNZ / Quin Tauetau
The government announced almost 150,000 families will receive an extra $50 a week to help ease the pain caused by soaring petrol prices, but who can expect to see that money show up in their account next month?
Speaking at a media conference on Tuesday, Finance Minister Nicola Willis said the relief would come through a boost to the in-work tax credit – part of the Working for Families scheme.
People would start seeing the full benefit in their bank accounts from 7 April, if they were paid weekly, or 14 April, if they were paid fortnightly.
Who will get $50 a week?
Only low-to-middle-income workers who have children would be eligible for the payments, Willis said.
Finance Minister Nicola Willis making the announcement on Tuesday. Samuel Rillstone/RNZ
It excluded beneficiaries, superannuitants and those without children.
Prime Minister Christopher Luxon and Willis said for beneficiaries, there would be usual increases on April 1 which “working families” did not automatically get.
“And I’d also note, working families face the obligation to get to and from work each day. Beneficiaries do not face that obligation,” Willis said.
“The policy is carefully targeted to families in the squeezed middle – parents who are working hard for a living, are not eligible for main benefits, and yet have modest household incomes with which to support their children,” Willis said.
“We know these families will be hit particularly hard by the global fuel-price shock. We are delivering them timely relief.”
In the current tax year, the cut-off for receiving the tax credit was around $89,000 of annual household income for a family with one child, $112,000 for a family with two children and $135,000 for a family with three children.
Willis said the government could not relieve price pressures for all businesses and families who were feeling price pressures. She said “large, untargeted government spending programmes” could make the situation worse by driving up inflation and debt.
She said while families that missed out would also have welcomed support, the government was “limited by the big increase in debt that occurred in the aftermath of Covid”.
“If it’s not you getting the support today, just know it might be your friend, it might be your family member, it might be the person serving you at the cafe today. Working families who cannot easily avoid higher fuel costs.”
How long will it continue?
The temporary increase would last for as long as one year, or until the price of 91 octane petrol dropped below $3 a litre for four weeks in a row, Willis said.
How do you get it?
Families who were already receiving the in-work tax credit (IWTC) payments, would not need to do anything to receive the money, the government said, with Inland Revenue automatically delivering the increase.
For people who didn’t receive the IWTC payments who thought they might be available, they needed to contact Inland Revenue.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
