Fuel relief: $50 a week for eligible families — check if you qualify

About 143,000 lower-income working families with children will receive an extra $50 a week from April 7, as the Government moves to ease pressure from rising fuel prices.

The temporary increase to the in-work tax credit is part of a broader cost-of-living package announced by Prime Minister Christopher Luxon and Finance Minister Nicola Willis on Tuesday. The measure will run for up to one year, or until 91-octane petrol falls below $3 a litre for four consecutive weeks.

The policy will also extend eligibility to around 14,000 additional working families, who will receive the payment at a reduced rate.

Willis said the support was deliberately focused on working families in the “squeezed middle”.

"This temporary boost will deliver support to working families who are under significant cost-of-living pressure, without making inflation worse or further driving up Government debt," she said in a media release.

"The policy is carefully targeted to families in the squeezed middle – parents who are working hard for a living, are not eligible for main benefits, and yet have modest household incomes with which to support their children."

The Government will implement these changes at pace.

Willis also confirmed she would introduce an amendment paper to the Taxation Bill currently before Parliament, with the changes set to take effect from April 1.

Under the revised settings, the in-work tax credit will rise from $97.50 to $147.50 per week. Families with four or more children will receive an additional $15 a week for each child beyond the third.

According to the Government, most eligible households will not need to take any action, with payments automatically deposited. Those paid weekly will begin receiving the increase from April 7, while fortnightly recipients will see the change from April 14.

The package is expected to cost up to $373 million if implemented for the full year, with no ongoing cost beyond that period. The expense will fall within the Government’s operating allowance for Budget 2026 and has already been included in Treasury forecasts.

Eligibility and payment details

The in-work tax credit is administered by Inland Revenue and applies to families where at least one parent is in paid employment and no main benefit is received.

Eligibility is determined by household income and the number of dependent children. Current income thresholds sit at about $89,000 for a family with one child, $112,000 for two children, and $135,000 for three.

The Government said the largest group of beneficiaries will be households earning between $60,000 and $80,000 annually, with more than 41,000 families in that range receiving the full increase.

Those who believe they may now qualify have been advised to check their myIR account or contact Inland Revenue.

Officials said the increase is temporary, reflecting what they described as a short-term global shock.

Fuel supply and economic backdrop

The announcement comes amid ongoing concerns about fuel supply and global market instability.

Latest figures from the Ministry of Business, Innovation and Employment show the country held 49.9 days of petrol stocks, 45.5 days of diesel, and 44.7 days of jet fuel as of March 18. Combined fuel stocks stood at 46.9 days.

That is down slightly from March 15, when petrol stocks were recorded at 51.3 days, diesel at 47.1 days, and jet fuel at 49 days.

MBIE said eight more fuel shipments are expected to arrive by April 1, though the data does not account for shipments scheduled more than two weeks out.

PM Luxon has warned that the situation remains uncertain, describing the fuel crisis as one of the most significant shocks in recent history.

Finance Minister Willis said earlier that it would be "irresponsible" to provide blanket support to all households, cautioning that excessive spending could worsen inflation.