New and expectant parents are the big winners.
- The maximum weekly rate for paid parental leave will increase from $712.17 to $754.87 gross per week.
- And families will be able to receive early childhood education tax credits up to $75 a week.
Residents in the country’s biggest city are also set to benefit.
- The Auckland Regional Fuel Tax scheme that has been in place since July 1, 2018 is due to end after five years.
- From July 1, this extra tax of 11.5 cents per litre on petrol and diesel will be gone. That means the driver of a Toyota Hilux will save around $9.20 every time they fill up, while a Toyota Corolla driver will save around $5.75.
Those with residential investment property are also in for a boost.
- The Government has reduced the brightline test to two years for all properties after the previous government increased it to 10 years.
- The change means that people who sell residential investment property within two years of purchasing it will have to pay tax on any gains received. If you sell it after three years though, you won’t be taxed.
The Earthquake Commission’s Disputes Resolution Scheme also begins on July 1. This is an independent process for people who want to dispute the outcome of a natural hazard insurance claim.
And finally – bad news for hikers. From July 1, Great Walk hut and campsite prices will increase by 18%, except for Paparoa, which will increase by 6%.
July 1 also marks the start of the “Ratings Year” for many city councils, when rates increases are put in effect for homeowners.
- In Auckland, councillors endorsed a 6.8% increase this year, while water and wastewater prices will increase by 7.2%
- In Wellington, they are looking at a 16.4% increase for the next year, plus a 1.6% for the Moa Point Sludge Minimisation Facility
- Christchurch City Council is looking at a 9.95% increase.
Infometrics chief executive and economist Brad Olsen told The Front Page life is getting more expensive and we don’t want to be unduly penalising people who are becoming parents.
“We know that it’s difficult enough to raise a kid financially and we know that fewer and fewer people are doing it and having fewer kids over time, that creates sort of a demographic shift and so we’ve got to provide every support we can to those who are adding to the future population and ensuring that not only are they adding to society but they’re also adding to the future workforce.
“A lot of our social supports are set up around households and family households with children. That’s understandable, given that without enough support for children, we set up a whole new generation for failure or less success,” he said.
When it comes to the rates rises expected across the country, Olsen said some analysis revealed the average increase will sit somewhere around 15%.
“That would be the largest average rates increase since councils were amalgamated into their current form in 1989 or so.
“But, it’s also because we’ve underinvested and we’ve underpaid effectively over time for our infrastructure. That means we’ve seen some pretty big cost increases in recent years.
“We did some analysis at Infometrics earlier this year showing that the cost of building a bridge is up 38% over the last three years, putting in water pipes and roads and similar up about 27 to 30% over the last couple of years,” he said.
Listen to the full episode to hear more about what changes are taking effect from July 1.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
