Families feeling the cost of living pinch are being given a "welcome boost" by the new Government.
Prime Minister Christopher Luxon has kicked off his 100-day plan by announcing an increase to Working for Families, boosting Family Tax Credit rates from $136 per week to $144 per week.
“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 increases from $69 to $73 weekly after tax. These changes will come into effect on 1 April 2024," Luxon said.
Luxon said the cost of living had been causing "real pain" for families under Labour's six-year leadership and the increase will come as a boost for those who need it.
"New Zealanders up and down the country are struggling to pay for their groceries, mortgages and rents.
"Cabinet has confirmed that, as required by the Income Tax Act, Working for Families will be adjusted to compensate for the high inflation wreaking havoc on families’ budgets over the past year," he said.
Luxon confirmed the changes have already been accounted for in the Pre-Election Fiscal Update (PREFU), costing a total of $769 million over four years.
The Prime Minister said the Government will focus the Reserve Bank on a single mandate of reducing inflation as part of their "laser focus" 100-day plan.
"The previous Government gave the Reserve Bank multiple priorities which meant it was not solely focussed on keeping inflation at target," Luxon said.
Finance Minister Nicola Willis said a "mini budget" would be held on December 20.
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