Govt launches weekly support package: Rs 4,500 transfer to aid citizens amid Middle East crisis

Wellington (The Uttam Hindu): The impact of the ongoing US-Iran conflict is clearly visible on oil prices. Amid rising fuel prices, New Zealand Prime Minister Christopher Luxon defended his government's targeted inflation relief. He said New Zealand cannot control global energy markets, but it is important to help those most affected.

In a post on the social media platform X, PM Luxon said that the fighting in the Middle East is directly causing rising petrol prices in New Zealand. This is affecting households and businesses across the country, but the government cannot afford to ease the pressure for everyone. He said the government must avoid repeating the mistakes of Covid, where excessive spending led to inflation and higher debt.

Luxon said that timely, limited-term, and targeted assistance should be provided to those most in need. He also warned that a one-size-fits-all measure could lead to inflation.

The Luxon government has announced a temporary extension of the in-work tax credit. This will provide approximately 143,000 low- and middle-income working families with an extra $50 (4,500 Indian rupees) per week starting in April to help them with rising fuel costs.

This assistance will last for one year or until petrol prices fall and will provide reduced access to approximately 14,000 more families. Officials said the increase in in-work tax credits aims to cushion the impact of higher expenses without increasing inflation or debt. Under this major package, more than one million New Zealanders will receive an increase in their existing government assistance payments. Nearly one million pensioners will receive enhanced New Zealand Pension Scheme benefits. This will increase married couples' biweekly payments by more than $50.

Around 280,000 families will benefit from an increased Family Tax Credit, which could provide up to $1,050 in additional support annually. Students and beneficiaries will receive around $20 more biweekly. The government has also made changes to the 'Working for Families' scheme to support around 140,000 more families. KiwiSaver is also being boosted to help people buy their first home or save faster for retirement.