Starting Monday, life will become more affordable for many New Zealanders due to changes that will take effect on July 1, according to Prime Minister Christopher Luxon. One significant change is the removal of the Auckland regional fuel tax, which will save motorists 11.5 cents per litre. Luxon emphasizes that this saving is significant, especially during challenging financial times.
Despite the removal of the fuel tax, the government will continue to invest heavily in transport, including in Auckland. Luxon also mentions that nearly $4 billion has been allocated to repair and prevent potholes on state highways and local roads over the next three years. This includes $478 million for pothole prevention in Auckland, a 74% increase from the previous three-year period.
Funding for public transport services across the country is also set to increase by 41% compared to the previous three years. Another change coming into effect on July 1 is the new FamilyBoost reimbursement. This will allow families with young children to claim back up to 25% of their early childhood education fees, up to a maximum of $150 every two weeks.
Paid parental leave will also increase, with the maximum weekly rate rising from $712.17 to $754.87. Luxon believes these measures will help support families during the crucial early stages of a child’s life.
Luxon acknowledges the economic challenges New Zealand is facing but remains optimistic. He points to the Treasury’s Budget forecasts, which predict an improving outlook, with inflation under control, interest rates dropping, and growth recovering. He also notes that food prices have seen the smallest increase since September 2018.
Luxon concludes by saying that the government will continue to rebuild the economy so that workers, businesses, and families can prosper. He believes the cost of living measures being implemented will help New Zealanders navigate these difficult times.
