People who receive a benefit while working will now be allowed to keep a bit more of what they earn before their benefit gets cut.
Currently, someone on the Jobseeker Support benefit can only earn up to $90 a week, pre-tax, before their benefit gets cut by 70 cents for every extra $1 they earn.
Under the new rule changes, they'll be able to earn up to $160 a week before their benefit gets cut by 70 cents for every extra $1 they earn.
For people on Jobseeker Support (sole parent), the Sole Parent Support, Supported Living Payment or Veteran's Pensions, they'll also be able to earn $160 a week before their benefit starts getting cut by 30 cents per dollar, up from $115.
The changes will come into force from April 1, Social Development and Employment Minister Carmel Sepuloni says.
"Increasing the income abatement thresholds will make it more worthwhile for people to work, and improve the financial incentives to work part-time," she said.
"It also means people facing reduced work hours, for example because of the impacts of Covid-19, may more readily access financial assistance while staying in their job."
Sepuloni says it'll impact 82,900 people and families, of which more than half are families with children, who'll be better off by an average of $18 per week.
"The changes will help people and families get ahead, as we get through Covid-19, and rebuild New Zealand back stronger than ever."
It's been budgeted to cost just under $394 million over five years, according to Sepuloni.
SHARE ME