The National-led Government is focussed on creating greater opportunities for all New Zealanders.
We’re forging ahead with our clear plan to build a more productive and competitive economy, one of National’s priorities this term.
When we talk about the economy – about things like GDP and the balance of payments – we’re ultimately talking about people’s jobs, their wages, and the costs they face in going about their daily lives and raising their families.
That’s why on 1 April a number of positive changes kicked into action.
Reduced ACC levies have now taken effect. This means the average household will save about $200 a year, small businesses will save about $180 a year, and large employers will save on average $6,000 a year in total. For New Zealanders, collectively we’ll be better off to the tune of $387 million.
In 2011, we legislated to make sure benefit and superannuation payments increased each year to keep in line with inflation. We were the first government to legislate for payment rates to keep pace with the cost of living, despite challenging financial conditions at the time.
This means people receiving benefits and superannuation will get more in the hand, as those rates increased on April 1 as well. Benefits, student allowances, student loan living costs, and the Foster Care Allowance all went up by 1.38 per cent, in line with inflation. Changes to superannuation, which is linked to 66 per cent of the average wage, will see those on a married rate getting an extra $14.60 a week and those living alone getting another $9.50 a week.
The minimum wage has also risen from $13.75 an hour to $14.25. We’ve increased the minimum wage every year we’ve been in government, and the latest increase will keep the minimum wage at about 50 per cent of the average hourly rate – the highest rate in the OECD.
Our economy is looking up and that’s why it’s vitally important that over the next few years we continue to build on the hard-won gains we are making as a country.
And we are making gains.
Consumer confidence is running at a nine-year high. Consumer prices rose just 1.6 per cent in 2013 and food prices were up just 0.2 per cent in the past year. Interest rates, while increasing, remain near 50-year lows, and we’re on track to surplus next year.
New Zealand now has the opportunity to significantly improve its economic fortunes and provide a better future for Kiwi families.