Inflation and the cost of living

The irony of two years’ trying to keep the economy as healthy as the population, is that the economy is currently running well enough but ordinary New Zealanders can’t keep up.

Soaring global inflation is predicted to ease from later this year.  The Budget introduces measures designed to get New Zealanders through the meantime.

Reductions at the pump and on public transport extend for a further two months, till August.

A cost-of-living targeted payment of $350 delivered across three monthly payments from August 1, is planned.

It’s a top up, it’s temporary and it’s tax-free for an estimated 2.1 million Kiwis who earned less than $70,000 last year and are aged 18 or over.  It works out at round $27 per week and Inland Revenue will administer it.

Nobody needs to apply.  Inland Revenue will pay it directly into your bank account if you’re eligible (check that your personal bank account details are correct in myIR).

Those who already qualify for the Winter Energy Payment, or who qualify for Jobseeker support, superannuation or certain other benefits won’t receive it.

To increase competitive pricing for groceries, the Government took on board Commerce Commission findings that restrictive covenants over land prevent new entrants from entering the grocery retail market.  New legislation bans these, a move that may be business- as well as consumer- friendly.