Important changes on 1 April
This Friday 1 April is an important date when a lot of important changes are happening to tax, welfare and employment opportunities.
I’m very pleased that New Zealand Super and benefits will rise on 1 April to meet the cost of living.
The Government has announced that the married rate for New Zealand Super will increase on 1 April by 6.85%, which is just over $22 a week.
Last year, Prime Minister John Key promised that people would be compensated for the small rise in GST and that is exactly what’s happened.
On 1 October last year compensation was given to superannuitants, which is now permanent. The further increase on Friday is another boost for our senior citizens.
All other benefits, including invalids, sickness and unemployment, will increase by 3.75% on Friday to match the cost of living.
I’m proud that the total married rate for New Zealand Super, after tax, has increased by $166 per fortnight over the last three years.
A very important point to remember with NZ Super is that it is tied to the after-tax wage. This means that a growing economy and tax cuts will always flow into higher payments for superannuitants.
This is why the Government has such a big focus on getting the economy growing again after a tough few years.
As part of this, the company tax rate is being cut from 30% to 28%. This will be a real boost to business and help us compete with Australia. It will encourage more jobs, investment and growth.
A number of tax rules are also changing around trusts and depreciation. These will help make the system fairer and encourage investment into the right places.
You can find more detail about these changes online at www.msd.govt.nz, or www.ird.govt.nz for the tax changes.
The 90 day trial period for large businesses (with over 20 employees) begins this week too. It has made a big difference for smaller businesses who have been prepared to give an employee a go.
It’s proven to be a very positive step in giving businesses the confidence to take on a new worker, who may not be given the opportunity otherwise.
Also this week, the minimum wage goes up to $13/hr (which is an increase of about $10 a week). This decision was centred around protecting jobs and ensuring a fair wage.
As always you can also contact my offices in Levin (06 367 9110) or Paraparaumu (04 298 2906) for further information.