Updates · 2024 – 2026
New Zealand Financial News & Updates
Tax, Official Cash Rate, mortgage, KiwiSaver, benefit and pay changes affecting New Zealand residents — each summarised from the announcement by the government agency, the Reserve Bank or the company that made it, and linked to the original.
All updates
68 updates, newest first
Accommodation Supplement Entry Threshold for Homeowners Rises to 40% of Base Rate from 1 Apr 2027
Work and Income said on 23 Sep 2026 that the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill passed its final reading on 25 Aug 2026. From 1 Apr 2027 the accommodation costs some homeowners must be paying to get Accommodation Supplement rise from 30% to 40% of the relevant base rate; people paying rent or board are not affected.
What changed (effective 1 Apr 2027)
- Entry threshold, homeowners: 40% of the relevant base rate (from 30%)
- Costs it applies to: homeownership costs such as a mortgage, house insurance and rates
- Not affected: people paying rent or board; homeowners where either partner gets NZ Super, Veteran's Pension, Supported Living Payment or the equivalent Emergency Benefit
- Legislation: Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill, passed on 25 Aug 2026
No Transitional Arrangements When Fees Free Ends on 31 Dec 2026
Inland Revenue said the Government has confirmed there will be no transitional arrangements when Fees Free ends on 31 Dec 2026: learners must complete an eligible qualification or programme on or before that date to apply, and those completing in 2027 or later are not eligible, even if they started tertiary study for the first time in 2025 or 2026.
What changed (effective 31 Dec 2026)
- Transitional arrangements: none; no special rules for people already studying
- Eligibility: based on when the qualification or programme is completed, not when the learner enrolled
- Completing in 2027 or later: not eligible, including first-time learners who started in 2025 or 2026
- Completing in 2026: can apply within 12 months of completing
- Completed in 2025, not yet applied: apply by 31 Dec 2026
Parental Assistance Test for Jobseeker Support Confirmed from 2 Nov 2026 as Bill Passes
Work and Income said on 16 Sep 2026 that the Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill passed its final reading on 25 Aug 2026. From 2 Nov 2026, 18- and 19-year-olds and a small number of 16- and 17-year-olds must meet a Parental Assistance Test to get Jobseeker Support or the equivalent Emergency Benefit; the parental income limit is NZD 67,225.
What changed (effective 2 Nov 2026)
- Legislation: Social Security (Jobseeker Support and Accommodation Supplement) Amendment Bill, passed on 25 Aug 2026
- Who must do the test: 18- and 19-year-olds, a small number of 16- and 17-year-olds, and partners aged under 20
- Parental Assistance Test: cannot reasonably be expected to rely on parents for support, and/or parents' combined income before tax at or below the limit
- Parental income limit: NZD 67,225
- Not required: young people with dependent children or getting Foster Care Allowance for a child in their care
- Current recipients: do the test at their 26-week reapplication from 2 Nov 2026
ASB Raises Housing Variable Rate to 6.29% From 9 Sep 2026 After OCR Rise to 2.75%
ASB said it is increasing its variable home loan rates by 25 basis points from 9 Sep 2026 for new customers and 10 Sep 2026 for existing customers, after the Reserve Bank of New Zealand increased the Official Cash Rate from 2.50% to 2.75%. Its Savings Plus rate rises by 25 basis points from 1 Oct 2026 and Headstart by 10 basis points from 10 Sep 2026.
What changed (effective 9 Sep 2026)
- Housing Variable: 6.29% (from 6.04%), from 9 Sep 2026 for new and 10 Sep 2026 for existing customers
- Orbit Variable: 6.39% (from 6.14%), from 9 Sep 2026 for new and 10 Sep 2026 for existing customers
- Savings Plus: 2.05% (from 1.80%), from 1 Oct 2026
- Headstart (all balances): 2.05% (from 1.95%), from 10 Sep 2026
- RBNZ Official Cash Rate (trigger): 2.75% (from 2.50%)
Company announcement — figures are from ASB Bank’s own release, not an official government source.
ANZ NZ Lifts Floating Home Loan Rate to 6.29% and Flexible to 6.40% After OCR Rise to 2.75%
ANZ NZ said it is lifting its Floating and Flexible home loan rates by 25 basis points to 6.29% and 6.40% respectively, after the Reserve Bank lifted the OCR by 25 basis points to 2.75% on 2 Sep 2026. The Floating rate applies to new loans from 9 Sep 2026 and existing loans from 23 Sep 2026, the Flexible rate from 23 Sep 2026, and the Serious Saver premium rate rises by 25 basis points from 1 Oct 2026.
What changed (effective 9 Sep 2026)
- Floating home loan rate: 6.29% (up 25 basis points), new loans from 9 Sep 2026, existing loans from 23 Sep 2026
- Flexible home loan rate: 6.40% (up 25 basis points), new and existing loans from 23 Sep 2026
- Serious Saver premium interest rate: up 25 basis points from 1 Oct 2026
- RBNZ Official Cash Rate (trigger): 2.75% (up 25 basis points)
Company announcement — figures are from ANZ Bank New Zealand’s own release, not an official government source.
RBNZ Raises Official Cash Rate by 25 Basis Points to 2.75%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached consensus on 2 Sep 2026 to increase the Official Cash Rate (OCR) by 25 basis points to 2.75%. The Committee said inflation increased to 4.1% in the June quarter because of higher fuel prices arising from the conflict in the Middle East.
What changed
- Official Cash Rate (OCR): 2.75% (up 25 basis points)
- MPC decision: consensus to increase the OCR by 25 basis points
Westpac NZ Raises Choices Floating Rate to 6.39% p.a. and Bonus Saver to 1.75% From 7 Sep 2026
Westpac NZ said its variable home and business lending rates will increase by 0.25 percentage points, from 7 Sep 2026 for new customers and 10 Sep 2026 for existing customers, in response to the 0.25 percentage point rise in the official cash rate on 2 Sep 2026. Its Bonus Saver rate also rises by 0.25 percentage points from 7 Sep 2026; fixed rates are unchanged.
What changed (effective 7 Sep 2026)
- Choices Floating and Offset: 6.39% p.a. (up 0.25 percentage points), from 7 Sep 2026 for new and 10 Sep 2026 for existing customers
- Choices Everyday: 6.49% p.a. (up 0.25 percentage points), from 7 Sep 2026 for new and 10 Sep 2026 for existing customers
- Bonus Saver/PIE total potential rate: 1.75% p.a. (up 0.25 percentage points), from 7 Sep 2026
- Bonus Saver/PIE bonus and base rates: bonus rate 1.70% p.a. (up 0.25 percentage points); base rate unchanged at 0.05% p.a.
- Fixed lending rates: no change
Company announcement — figures are from Westpac New Zealand’s own release, not an official government source.
Kiwibank Reports Full-Year Net Profit of NZD 174 Million, Down from NZD 191 Million
Kiwibank reported net profit after tax of NZD 174 million for the 12 months to 30 Jun 2026, compared with NZD 191 million in FY25, primarily driven by a lower net interest margin. Lending grew by NZD 3.1 billion to NZD 38.9 billion and deposits by NZD 2.4 billion to NZD 32.7 billion.
Key figures
- Net profit after tax, 12 months to 30 Jun 2026: NZD 174 million (FY25: NZD 191 million)
- Retail and business lending growth: NZD 3.1 billion, taking total lending to NZD 38.9 billion
- Retail home lending growth: NZD 2.1 billion
- Business lending growth: NZD 1.0 billion
- Total deposits: NZD 32.7 billion (up NZD 2.4 billion)
Company announcement — figures are from Kiwibank’s own release, not an official government source.
BNZ Raises Rapid Save Interest Rate to 2.00% p.a. from 21 Aug 2026
BNZ said it is increasing the interest rate on its Rapid Save savings account to 2.00% p.a. from 21 Aug 2026; the release does not state the previous rate.
What changed (effective 21 Aug 2026)
- Rapid Save interest rate: 2.00% p.a. from 21 Aug 2026
Company announcement — figures are from Bank of New Zealand’s own release, not an official government source.
ASB Reports Full-Year Cash Net Profit of NZD 1,318 Million, Down 2%
ASB reported cash net profit after tax of NZD 1,318 million for the 12 months to 30 Jun 2026, down 2% on the previous year, and statutory net profit after tax of NZD 1,398 million, down 4%. Operating expenses grew 16% to NZD 1,645 million, which ASB said was mainly driven by the Credit Contracts and Consumer Finance Act 2003 class action settlement, inflation and hiring.
Key figures
- Cash net profit after tax, 12 months to 30 Jun 2026: NZD 1,318 million (down 2% on the previous year)
- Statutory net profit after tax: NZD 1,398 million (down 4%)
- Home, business and rural lending, and customer deposits: each up 6%
- Operating expenses: NZD 1,645 million (up 16%)
- KiwiSaver funds under management: NZD 21.7 billion (up 15%)
Company announcement — figures are from ASB Bank’s own release, not an official government source.
Employment Leave Act 2026 Passes into Law, Replacing the Holidays Act from 6 Aug 2028
Employment New Zealand announced that the Employment Leave Act 2026 has passed into law and will replace the Holidays Act on 6 Aug 2028, changing how annual leave, sick leave, family violence leave, bereavement leave, public holidays and alternative leave are earned, taken and paid. The current Holidays Act rules apply until then.
What changed (effective 6 Aug 2028)
- New law: Employment Leave Act 2026, passed into law
- Starts: 6 Aug 2028, replacing the Holidays Act
- Covers: how annual leave, sick leave, family violence leave, bereavement leave, public holidays and alternative leave are earned, taken and paid
- Until then: the Holidays Act rules continue to apply, and the new law cannot be followed early
- Minimum entitlements: the new rules set the legal minimum; employers and employees can agree to better leave and pay
ANZ NZ Lifts Floating Home Loan Rate to 6.04% and Flexible to 6.15% After OCR Rise to 2.5%
ANZ NZ said it is lifting its Floating and Flexible home loan rates by 25 basis points to 6.04% and 6.15% respectively, after the Reserve Bank lifted the OCR by 25 basis points to 2.5%. The Floating rate applies to new loans from 15 Jul 2026 and existing loans from 29 Jul 2026, the Flexible rate from 29 Jul 2026, and the Serious Saver rate rises by 25 basis points from 1 Aug 2026.
What changed (effective 15 Jul 2026)
- Floating home loan rate: 6.04% (up 25 basis points), new loans from 15 Jul 2026, existing loans from 29 Jul 2026
- Flexible home loan rate: 6.15% (up 25 basis points), new and existing loans from 29 Jul 2026
- Serious Saver rate: up 25 basis points from 1 Aug 2026
- RBNZ Official Cash Rate (trigger): 2.5% (up 25 basis points)
Company announcement — figures are from ANZ Bank New Zealand’s own release, not an official government source.
Westpac NZ Raises Choices Floating Rate to 6.14% p.a. and Bonus Saver to 1.50% From 13 Jul 2026
Westpac NZ said the interest rates on all its variable home and business loans will increase by 0.25 percentage points, from 13 Jul 2026 for new customers and 16 Jul 2026 for existing customers, following the previous day’s 0.25 percentage point OCR rise. Its Bonus Saver rate also rises by 0.25 percentage points from 13 Jul 2026; fixed home loan rates are unchanged.
What changed (effective 13 Jul 2026)
- Choices Floating and Choices Offset: 6.14% p.a. (up 0.25 percentage points), from 13 Jul 2026 for new and 16 Jul 2026 for existing customers
- Choices Everyday: 6.24% p.a. (up 0.25 percentage points), from 13 Jul 2026 for new and 16 Jul 2026 for existing customers
- Bonus Saver/PIE total potential rate: 1.50% p.a. (up 0.25 percentage points), from 13 Jul 2026
- Simple Saver: 0.20% p.a. (up 0.15 percentage points), from 13 Jul 2026
- Notice Saver: unchanged at 3.00% p.a.
- Fixed home loan rates: no change
Company announcement — figures are from Westpac New Zealand’s own release, not an official government source.
RBNZ Raises Official Cash Rate by 25 Basis Points to 2.50%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached consensus on 8 Jul 2026 to increase the Official Cash Rate (OCR) by 25 basis points to 2.50%. The Committee said it was appropriate to start reducing the degree of monetary stimulus to ensure that inflation returns to target over the medium term.
What changed
- Official Cash Rate (OCR): 2.50% (up 25 basis points)
- MPC decision: consensus to increase the OCR by 25 basis points
Paid Parental Leave Maximum Rises to NZD 811.05 a Week from 1 Jul 2026
Employment New Zealand announced that from 1 Jul 2026 the maximum parental leave payment rises from NZD 788.66 to NZD 811.05 a week before tax, and the minimum rate for self-employed parents from NZD 235 to NZD 239.50, based on 10 hours at the adult minimum wage of NZD 23.95 an hour.
What changed (effective 1 Jul 2026)
- Maximum parental leave payment: NZD 811.05 a week before tax (from NZD 788.66)
- Minimum rate, self-employed parents: NZD 239.50 a week before tax (from NZD 235)
- Payment period: weekly payments for up to 26 weeks, paid by Inland Revenue
- Current recipients: Inland Revenue adjusts the amount automatically
Budget 2026 Act Caps Donation Tax Credit Gifts at the Lower of NZD 100,000 or Taxable Income
Inland Revenue's Tax Policy site said on 28 May 2026 that the Taxation (Budget Measures) Act 2026 has been enacted. It caps gifts qualifying for the donation tax credit at the lower of NZD 100,000 or the donor's taxable income, and includes Working for Families measures to reduce complexity and potential future debt, in force from 1 Apr 2027.
What changed
- Donation tax credit: qualifying gifts capped at the lower of NZD 100,000 or the donor's taxable income
- Working for Families: measures to reduce complexity and potential future debt, in force from 1 Apr 2027
- Legislation: Taxation (Budget Measures) Act 2026, enacted
Fees Free to End for Qualifications Completed After 31 Dec 2026
Inland Revenue said the Government has announced it is ending Fees Free for the final year of tertiary study and final 2 years of work-based learning. Learners who complete an eligible qualification or programme in 2026 can still apply within 12 months of completing, up to 31 Dec 2027; those completing after 31 Dec 2026 are no longer eligible.
What changed (effective 31 Dec 2026)
- Fees Free: ending for the final year of tertiary study and final 2 years of work-based learning
- Completing in 2026: can still apply within 12 months of completing, up to 31 Dec 2027
- Completing after 31 Dec 2026: no longer eligible
- Details: still being worked through; Inland Revenue will provide more information
Budget 2026 Proposes Raising the FIF De Minimis Threshold to NZD 100,000 from 2026–27
Inland Revenue published Budget 2026 information sheets on 28 May 2026 describing a proposal to raise the foreign investment fund (FIF) de minimis threshold to NZD 100,000 of overseas investments (from NZD 50,000) and let all New Zealand residents use the revenue account method for unlisted foreign shares. It is subject to legislation and would apply from 1 Apr 2026 for the 2026–27 tax year.
What changed (effective 2026–27)
- FIF de minimis threshold (proposed): NZD 100,000 of overseas investments (from NZD 50,000)
- Revenue account method (proposed): open to all New Zealand residents for unlisted foreign shares (previously recent migrants only)
- Proposed start: 1 Apr 2026, for the 2026–27 tax year
- Status: proposal; may change as the legislation moves through the parliamentary process
Accommodation Supplement Maximums Up NZD 10–30 a Week; Income-Related Rent Floor 30% from 1 Apr 2027
Work and Income said the Government has announced housing support changes, part of Budget 2026: from 1 Apr 2027 Accommodation Supplement maximum rates rise by between NZD 10 and NZD 30 a week, the Temporary Additional Support maximum falls from 30% to 25% of the relevant main benefit, and the minimum Income-Related Rent for social housing tenants rises from 25% to 30% of assessable income.
What changed (effective 1 Apr 2027)
- Accommodation Supplement maximum rates: up NZD 10 to NZD 30 a week, depending on where people live and family size
- Temporary Additional Support maximum: 25% of the relevant main benefit (from 30%); not for NZ Super or Veteran's Pension
- Minimum Income-Related Rent (social housing): 30% of assessable income (from 25%), phased in within 12 months
- Emergency and transitional housing contributions: 30% of assessable income (from 25%)
- Social housing needs assessment: to be redesigned; timing to be published later
FIF Revenue Account Method for Migrants' Unlisted Foreign Shares Enacted, Effective 1 Apr 2025
Inland Revenue's commentary on the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026, which received Royal assent on 30 Mar 2026, sets out a new revenue account method (RAM) for foreign investment fund (FIF) interests, taking effect on 1 Apr 2025: dividends and gains on disposal are taxed, with gains discounted by 30%.
What changed (effective 1 Apr 2025)
- New FIF calculation method: revenue account method (RAM): tax on dividends derived and on gains or losses on disposal
- Gains and losses on disposal: discounted by 30% before being taxed at the person's marginal tax rate
- Who can elect it: people who were non-resident for five years before becoming New Zealand tax resident
- Eligible interests: unlisted foreign company shares acquired before becoming New Zealand tax resident
- Legislation: Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Act 2026, Royal assent 30 Mar 2026
Westpac NZ Reports Half-Year Net Profit of NZD 545 Million, Up 4%
Westpac NZ reported net profit of NZD 545 million for the six months ended 31 Mar 2026, up 4% on the same period a year earlier and down 19% on the previous six months, which it attributed to higher impairment provisions and margin compression. The net interest margin was 2.29%, up 3 basis points.
Key figures
- Net profit, six months ended 31 Mar 2026: NZD 545 million (up 4% year on year; down 19% on the previous six months)
- Net operating income: NZD 1,555 million (up 4%)
- Operating expenses: NZD 760 million (up 4%)
- Net impairment charge: NZD 37 million (NZD 33 million in the same period last year)
- Net interest margin: 2.29% (up 3 basis points)
- Home lending, business lending, deposits: NZD 73.3 billion (up 5%); NZD 35.0 billion (up 6%); NZD 83.7 billion (up 3%)
Company announcement — figures are from Westpac New Zealand’s own release, not an official government source.
ANZ NZ Reports Half-Year Cash Net Profit of NZD 1,238 Million, Up 2%
ANZ NZ reported cash net profit after tax of NZD 1,238 million for the six months to 31 Mar 2026, up 2% on NZD 1,208 million for the six months to 30 Sep 2025, and statutory net profit after tax of NZD 1,259 million, flat on that period. Customer deposits rose 4% and net loans and advances 2%, while the net interest margin fell by 5 basis points.
Key figures
- Cash net profit after tax, six months to 31 Mar 2026: NZD 1,238 million (from NZD 1,208 million, up 2%)
- Statutory net profit after tax: NZD 1,259 million (flat on the prior period)
- Customer deposits: up 4% on the six months to 30 Sep 2025
- Net loans and advances: up 2% on the six months to 30 Sep 2025
- Net interest margin: down 5 basis points
- Credit impairment charge: NZD 22 million (a release of NZD 20 million in the previous period)
Company announcement — figures are from ANZ Bank New Zealand’s own release, not an official government source.
In-Work Tax Credit Temporarily Up NZD 50 a Week to NZD 147 from 1 Apr 2026
Inland Revenue said on 24 Mar 2026 that the Government has announced a temporary increase to the in-work tax credit (IWTC) from 1 Apr 2026: the full amount rises by NZD 50 a week, from NZD 97 to NZD 147, until 31 Mar 2027 or until 91 petrol is below NZD 3 a litre for four consecutive weeks, whichever is earlier.
What changed (effective 1 Apr 2026)
- In-work tax credit (full amount): NZD 147 a week (from NZD 97)
- Period: 1 Apr 2026 to 31 Mar 2027, or until 91 petrol is below NZD 3 a litre for four consecutive weeks, if earlier
- First increased payment: 7 Apr 2026 (weekly) or 14 Apr 2026 (fortnightly)
- Current recipients: the increase is applied automatically
Benefits Rise with CPI (3.11%) and NZ Super with Wages (2.91%) from 1 Apr 2026
Work and Income announced that benefit, pension and some payment rates increase on 1 Apr 2026 under the Annual General Adjustment: main benefits are adjusted to the Consumers Price Index, which rose 3.11%, and NZ Super, Veteran's Pension and some income thresholds to average wage growth of 2.91%. Income and asset limits for some support also rise.
What changed (effective 1 Apr 2026)
- Main benefits: adjusted to the Consumers Price Index, up 3.11%
- NZ Super and Veteran's Pension: adjusted to average wage growth, up 2.91%
- Income and asset limits: rise for some support, such as Accommodation Supplement, Disability Allowance, Childcare Assistance and the Community Services Card
- Full new rate paid: week of 13 Apr 2026 (weekly) or 21 Apr 2026 (fortnightly)
- How applied: automatically; total payments after 1 Apr 2026 will not be less than before
Student Allowances and Student Loan Living Costs Rise with CPI (3.11%) from 1 Apr 2026
StudyLink announced that Student Allowances and Student Loan living costs increase on 1 Apr 2026 under the Annual General Adjustment, in line with the Consumers Price Index rise of 3.11%; some income thresholds move with average wage growth of 2.91%. The maximum Student Loan living cost component becomes NZD 333.48 a week.
What changed (effective 1 Apr 2026)
- Student Allowance, under 24, at home: up to NZD 286.35 net (NZD 321.64 gross) a week
- Student Allowance, under 24, away from home: up to NZD 333.38 net (NZD 378.64 gross) a week
- Student Allowance, 24 or over, away from home: NZD 380.43 net (NZD 435.67 gross) a week
- Student Loan living cost component: NZD 333.48 a week maximum
- Adjustment basis: Consumers Price Index, up 3.11%; some income thresholds by average wage growth, up 2.91%
- Full new rate paid: from the week of 13 Apr 2026; Student Allowance changes apply automatically
Kiwibank Reports Half-Year Net Profit of NZD 103 Million, Up 12%
Kiwibank reported net profit after tax of NZD 103 million for the six months to 31 Dec 2025, up 12% on the prior comparative period. Total lending rose to NZD 37.6 billion and total deposits to NZD 31.8 billion, while the net interest margin fell to 2.18% from 2.29%.
Key figures
- Net profit after tax, six months to 31 Dec 2025: NZD 103 million (up 12% on the prior comparative period)
- Total lending: NZD 37.6 billion (after lending of NZD 1.8 billion in the half)
- Total deposits: NZD 31.8 billion (up NZD 1.4 billion)
- Net interest margin: 2.18% (from 2.29%)
- Everyday banking fees removed: 12, including the Visa Debit Card annual account fee, overseas ATM withdrawal fees and card replacement fees
Company announcement — figures are from Kiwibank’s own release, not an official government source.
Best Start Income-Tested from Year One for Babies Born from 1 Apr 2026; Annual Rate NZD 4,041
Inland Revenue said on 18 Feb 2026 that from 1 Apr 2026 the Best Start tax credit will be income-tested from the first year, as it already is in years 2 and 3, and the annual rate will increase to NZD 4,041. Babies born before 1 Apr 2026 continue to receive the full first-year entitlement.
What changed (effective 1 Apr 2026)
- Best Start, first year: income-tested for babies born on or after 1 Apr 2026
- Annual rate: increases to NZD 4,041
- Babies born before 1 Apr 2026: full first-year entitlement continues
- New clients: apply for Working for Families first before Best Start can be assessed
ASB Reports Half-Year Cash Net Profit of NZD 719 Million, Up 1%
ASB reported cash net profit after tax of NZD 719 million for the six months to 31 Dec 2025, up 1% on the prior comparative period, and statutory net profit after tax of NZD 765 million. Operating expenses rose 21% to NZD 839 million, which ASB said was largely driven by a class action settlement and investment in people, technology, digital experience and regulatory compliance.
Key figures
- Cash net profit after tax, six months to 31 Dec 2025: NZD 719 million (up 1% on the prior comparative period)
- Statutory net profit after tax: NZD 765 million
- Home lending growth since Dec 2024: 8%
- Business and rural lending growth since Dec 2024: 4%
- Total customer deposits: up 5%
- Operating expenses: NZD 839 million (up 21%)
Company announcement — figures are from ASB Bank’s own release, not an official government source.
KiwiSaver Temporary Rate Reduction Opens 1 Feb 2026 Ahead of 3.5% Minimum from 1 Apr 2026
Inland Revenue said KiwiSaver members can apply in myIR for a temporary KiwiSaver rate reduction from 1 Feb 2026, ahead of the increase in the minimum KiwiSaver contribution rate on 1 Apr 2026. A reduction applies from the member's first payday on or after 1 Apr 2026, and members with an active KiwiSaver savings suspension are not eligible.
What changed (effective 1 Feb 2026)
- Applications for a temporary rate reduction: open in myIR from 1 Feb 2026
- When a reduction applies: from the member's first payday on or after 1 Apr 2026, even if the employer is notified earlier
- Minimum KiwiSaver contribution rate: increases on 1 Apr 2026 (compulsory rate 3.5%)
- Employer contributions: may be reduced to match the employee's reduced rate; must rise to the compulsory 3.5% rate, or higher by choice, when the employee moves to a higher rate
- Not eligible: members with an active KiwiSaver savings suspension
Final-Year Fees Free Opens for Applications Through Inland Revenue, Up to NZD 12,000
Inland Revenue announced that from 15 Jan 2026 first-time tertiary learners can apply in myIR for final-year Fees Free, an entitlement of up to NZD 12,000 for the final year of study or final two years of work-based learning, for eligible studies completed from 2025. Learners who completed in the 2025 calendar year have until 31 Dec 2026 to apply.
What changed (effective 15 Jan 2026)
- Entitlement: up to NZD 12,000 for the final year of study or final two years of work-based learning
- Applications: open from 15 Jan 2026 in myIR, within one year of completing
- Deadline for 2025 completions: 31 Dec 2026
- Where it is paid: towards the learner's student loan balance, otherwise to their bank account
- Replaces: first-year Fees Free; learners who used first-year Fees Free are not eligible
- Tax treatment: not income for income tax, Working for Families or Child Support
Adult Minimum Wage to Rise 2% to NZD 23.95 an Hour from 1 Apr 2026
The Government announced that the adult minimum wage will increase by 2% to NZD 23.95 an hour from 1 Apr 2026, with the starting-out and training minimum wages set at NZD 19.16, 80% of the adult rate. It put the number of workers benefiting at around 122,500.
What changed (effective 1 Apr 2026)
- Adult minimum wage: NZD 23.95 an hour from 1 Apr 2026 (up 2%)
- Starting-out and training minimum wages: NZD 19.16 an hour (80% of the adult rate)
- Workers benefiting: around 122,500
ANZ NZ Cuts Floating Home Loan Rate to 5.69% and Flexible to 5.80% From 28 Nov 2025
ANZ NZ said it is lowering its Floating and Flexible home loan rates by 20 basis points to 5.69% and 5.80% respectively, following the Reserve Bank’s OCR cut on 26 Nov 2025. The Floating rate applies to new loans from 28 Nov 2025 and existing loans from 2 Dec 2025; the Serious Saver rate falls by 15 basis points from 29 Nov 2025.
What changed (effective 28 Nov 2025)
- Floating home loan rate: 5.69% (down 20 basis points), new loans from 28 Nov 2025, existing loans from 2 Dec 2025
- Flexible home loan rate: 5.80% (down 20 basis points), new and existing loans from 28 Nov 2025
- Serious Saver rate: down 15 basis points from 29 Nov 2025
- Online Call and Business Premium Call standard rates: down 10 basis points from 2 Dec 2025
Company announcement — figures are from ANZ Bank New Zealand’s own release, not an official government source.
ASB Cuts Housing Variable Rate to 5.79% From 28 Nov 2025 After OCR Cut
ASB said it is reducing interest rates across its variable home lending products in response to the Reserve Bank’s November OCR announcement, with Housing Variable falling to 5.79% from 5.99%, for new customers from 28 Nov 2025 and existing customers from 2 Dec 2025. Savings Plus falls to 1.60% from 1 Dec 2025 and Headstart to 1.80% from 2 Dec 2025.
What changed (effective 28 Nov 2025)
- Housing Variable: 5.79% (from 5.99%), from 28 Nov 2025 for new and 2 Dec 2025 for existing customers
- Orbit Variable: 5.89% (from 6.09%), from 28 Nov 2025 for new and 2 Dec 2025 for existing customers
- Back My Build: 3.34% (from 3.54%), from 28 Nov 2025 for new and 2 Dec 2025 for existing customers
- Savings Plus: 1.60% (from 1.80%), from 1 Dec 2025
- Headstart (all balances): 1.80% (from 2.00%), from 2 Dec 2025
- Savings On Call and ASB Cash Fund: unchanged at 0.10%
Company announcement — figures are from ASB Bank’s own release, not an official government source.
RBNZ Cuts Official Cash Rate by 25 Basis Points to 2.25%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) voted by 5 to 1 on 26 Nov 2025 to reduce the Official Cash Rate (OCR) by 25 basis points to 2.25%, from 2.5%. The options discussed were holding the OCR at 2.5% or lowering it to 2.25%.
What changed
- Official Cash Rate (OCR): 2.25% (from 2.5%)
- MPC vote: 5 to 1; the options were a hold at 2.5% or a cut to 2.25%
Westpac NZ Cuts Choices Floating Rate to 5.89% p.a. and Bonus Saver to 1.25% From 1 Dec 2025
Westpac NZ said it is cutting its variable home loan rates by 0.20 percentage points and most variable business lending rates by 0.25 percentage points, from 1 Dec 2025 for new customers and 4 Dec 2025 for existing customers, following the OCR cut on 26 Nov 2025. Its Bonus Saver total potential rate falls to 1.25% p.a. from 1 Dec 2025 and its Notice Saver rate stays at 3.00% p.a.
What changed (effective 1 Dec 2025)
- Choices Floating and Choices Offset: 5.89% p.a. (down 0.20 percentage points), from 1 Dec 2025 for new and 4 Dec 2025 for existing customers
- Choices Everyday: 5.99% p.a. (down 0.20 percentage points), from 1 Dec 2025 for new and 4 Dec 2025 for existing customers
- Bonus Saver/PIE total potential rate: 1.25% p.a. (down 0.25 percentage points), from 1 Dec 2025
- Notice Saver: unchanged at 3.00% p.a.
- Simple Saver: unchanged at 0.05% p.a.
Company announcement — figures are from Westpac New Zealand’s own release, not an official government source.
RBNZ Confirms LVR Easing from 1 Dec 2025: High-LVR Lending Cap 25% Owner-Occupier, 10% Investor
The Reserve Bank of New Zealand (RBNZ) confirmed on 14 Nov 2025 that its planned easing of mortgage loan-to-value ratio (LVR) restrictions will go ahead after consultation with banks. From 1 Dec 2025, banks may make up to 25% of new owner-occupier lending (from 20%) at an LVR above 80%, and up to 10% of new investor lending (from 5%) at an LVR above 70%.
What changed (effective 1 Dec 2025)
- Owner-occupier lending with an LVR above 80%: up to 25% of new lending (from 20%)
- Investor lending with an LVR above 70%: up to 10% of new lending (from 5%)
- Effective: 1 Dec 2025
- Status: confirmed after consultation with banks on changes to their Conditions of Registration
- Review: the new Financial Policy Committee will review LVR settings at least annually
BNZ Reports Full-Year Statutory Net Profit of NZD 1,499 Million, Down 0.5%
BNZ reported statutory net profit after tax of NZD 1,499 million for the year to 30 Sep 2025, down NZD 7 million or 0.5% on the prior year. Revenue fell 3.7% year on year, total lending rose 4.6% and deposits rose 5.8% to NZD 87 billion.
Key figures
- Statutory net profit after tax, year to 30 Sep 2025: NZD 1,499 million (down NZD 7 million or 0.5%)
- Revenue: down 3.7% year on year
- Total lending: up 4.6% (home lending up 6.4%, business lending up 2.2%)
- Deposits: NZD 87 billion (up 5.8% or NZD 4.8 billion)
Company announcement — figures are from Bank of New Zealand’s own release, not an official government source.
RBNZ Plans LVR Easing from 1 Dec 2025: High-LVR Lending Cap 25% Owner-Occupier, 10% Investor
The Reserve Bank of New Zealand (RBNZ) announced on 14 Oct 2025 that it intends to ease mortgage loan-to-value ratio (LVR) restrictions from 1 Dec 2025, which would raise the limit on the share of new owner-occupier lending above an 80% LVR to 25% (from 20%) and for new investor lending above a 70% LVR to 10% (from 5%). It will first consult banks on their Conditions of Registration; DTI settings stay unchanged.
What changed (effective 1 Dec 2025)
- Owner-occupier lending with an LVR above 80% (planned): up to 25% of new lending (from 20%)
- Investor lending with an LVR above 70% (planned): up to 10% of new lending (from 5%)
- Planned start: 1 Dec 2025
- Status: intention; the RBNZ to consult banks on changes to their Conditions of Registration over two weeks
- Debt-to-income (DTI) restrictions: reviewed; settings unchanged
RBNZ Cuts Official Cash Rate by 50 Basis Points to 2.5%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached consensus on 8 Oct 2025 to reduce the Official Cash Rate (OCR) by 50 basis points to 2.5%, after discussing a reduction of 25 or 50 basis points. The Committee said annual consumers price index inflation is around the top of its 1–3% target band.
What changed
- Official Cash Rate (OCR): 2.5% (down 50 basis points)
- MPC decision: consensus to reduce the OCR by 50 basis points; options discussed were a 25 or a 50 basis point cut
Jobseeker Support: Parental Assistance Test for 18- and 19-Year-Olds from Nov 2026
Work and Income said the Government has announced that from November 2026 young people aged 18 and 19 will need to meet a Parental Assistance Test before they can get Jobseeker Support or Emergency Benefit. The change does not include 18- and 19-year-olds who have children; the parental income limit was NZD 65,529 when announced.
What changed (effective Nov 2026)
- Who: 18- and 19-year-olds applying for Jobseeker Support or Emergency Benefit, except those who have children
- New requirement: Parental Assistance Test: a parental income test and/or a parental support gap test
- Parental income limit: NZD 65,529 when announced; set at the Supported Living Payment cut-out point for a couple with dependent children
- Limit indexing: expected to rise with the Annual General Adjustment on 1 Apr 2026
- Starts: November 2026
FamilyBoost Expanded to 40% of ECE Costs, up to NZD 1,560 a Quarter, from the Jul–Sep 2025 Quarter
Inland Revenue said on 24 Sep 2025 that the FamilyBoost changes announced by the Government in July have received Royal Assent and apply from the July–September 2025 quarter: families can claim 40% of early childhood education costs, up to NZD 1,560 a quarter, with claims open from 1 Oct 2025.
What changed
- FamilyBoost payment: 40% of ECE costs, up to NZD 1,560 each quarter
- Household income threshold: NZD 57,286 each quarter
- Abatement rate: 7% for household income over NZD 35,000 each quarter
- Applies from: the July–September 2025 quarter; claims from 1 Oct 2025
RBNZ Cuts Official Cash Rate by 25 Basis Points to 3%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) voted by a majority of 4 votes to 2 on 20 Aug 2025 to decrease the Official Cash Rate (OCR) by 25 basis points to 3%, from 3.25%. The options voted on were a reduction of 25 basis points or of 50 basis points.
What changed
- Official Cash Rate (OCR): 3% (from 3.25%)
- MPC vote: 4 votes to 2; the options were a 25 or a 50 basis point cut
Depositor Compensation Scheme Takes Effect, Protecting Depositors for up to NZD 100,000
The Reserve Bank of New Zealand (RBNZ) announced that the Depositor Compensation Scheme (DCS) came into effect on 1 Jul 2025, protecting depositors for up to NZD 100,000 if their bank or other licensed deposit taker fails. It covers standard banking products, including transaction, savings, notice and term deposit accounts, applies automatically, and does not cover investments such as KiwiSaver, bonds or shares.
What changed (effective 1 Jul 2025)
- Protection: up to NZD 100,000 if a bank or other licensed deposit taker fails
- Accounts covered: standard banking products, including transaction, savings, notice and term deposit accounts
- Who is protected: individuals, businesses and trusts, automatically
- Not covered: investments such as KiwiSaver, bonds and shares; frauds or scams
- Administration and funding: established under the Deposit Takers Act 2023; run by the Reserve Bank; fully funded by levies on industry
Paid Parental Leave Maximum Rises to NZD 788.66 a Week from 1 Jul 2025
Employment New Zealand announced that from 1 Jul 2025 the maximum parental leave payment for eligible employees and self-employed people rises from NZD 754.87 to NZD 788.66 gross a week, and the minimum rate for self-employed parents from NZD 231.50 to NZD 235.00, equal to 10 hours at the adult minimum wage of NZD 23.50 an hour.
What changed (effective 1 Jul 2025)
- Maximum parental leave payment: NZD 788.66 gross a week (from NZD 754.87)
- Minimum rate, self-employed parents: NZD 235.00 gross a week (from NZD 231.50)
- Minimum rate basis: 10 hours at the adult minimum wage of NZD 23.50 an hour
- Payment period: up to 26 weeks, paid by Inland Revenue
Working for Families Abatement Threshold Rises to NZD 44,900 and Rate to 27.5% from 1 Apr 2026
Inland Revenue's commentary on the Taxation (Budget Measures) Act 2025, published on 25 Jun 2025, sets out that from 1 Apr 2026 the Working for Families abatement threshold for the family tax credit and in-work tax credit rises from NZD 42,700 to NZD 44,900 and the abatement rate from 27% to 27.5%, for the 2026–27 and later tax years.
What changed (effective 1 Apr 2026)
- Abatement threshold, family and in-work tax credits: NZD 44,900 (from NZD 42,700)
- Abatement rate: 27.5% (from 27%)
- Applies to: the 2026–27 and later tax years
- Legislation: Taxation (Budget Measures) Act 2025, Royal assent 29 May 2025
RBNZ Cuts Official Cash Rate by 25 Basis Points to 3.25%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) voted by a majority of 5 votes to 1 on 28 May 2025 to lower the Official Cash Rate (OCR) by 25 basis points, from 3.50% to 3.25%. The options voted on were keeping the OCR on hold at 3.50% or reducing it to 3.25%.
What changed
- Official Cash Rate (OCR): 3.25% (from 3.50%)
- MPC vote: 5 votes to 1; the options were a hold at 3.50% or a cut to 3.25%
Budget 2025: KiwiSaver Default Rate to 3.5% in 2026 and 4% in 2028; Government Contribution Halved
Budget 2025, as set out in the Treasury's Budget at a Glance of 22 May 2025, announced that the default KiwiSaver employee and employer contribution rate will rise from 3% to 3.5% from 1 Apr 2026 and 4% from 1 Apr 2028. From 1 Jul 2025 the annual government contribution is to be halved, to a maximum of NZD 260.72; members with income over NZD 180,000 will no longer get it, and 16- and 17-year-olds become eligible.
What changed
- Default employee and employer contribution rate: 3.5% from 1 Apr 2026 and 4% from 1 Apr 2028 (from 3%)
- Opting down: employees may temporarily opt down to 3% and still be matched at that rate by their employer
- Annual government contribution: halved to 25 cents for each NZD 1 a member contributes, up to NZD 260.72, from 1 Jul 2025
- Income limit for the government contribution: none paid to members with income over NZD 180,000, from 1 Jul 2025
- 16- and 17-year-olds: government contribution from 1 Jul 2025; employer matching from 1 Apr 2026
Budget 2025 Lifts Working for Families Abatement Threshold and Rate, Income-Tests Best Start
Inland Revenue's Tax Policy site listed the Budget 2025 tax measures on 22 May 2025, including changes to Working for Families that raise the abatement threshold and the abatement rate and income-test the first year of Best Start. The page gives no amounts or start dates for these changes.
What changed
- Working for Families abatement threshold: raised (amount not stated in the announcement)
- Working for Families abatement rate: raised (rate not stated in the announcement)
- Best Start, first year: to be income-tested
RBNZ Cuts Official Cash Rate by 25 Basis Points to 3.5%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) agreed on 9 Apr 2025 to reduce the Official Cash Rate (OCR) by 25 basis points to 3.5%. The Committee said recently announced increases in global trade barriers create downside risks to the outlook for economic activity and inflation in New Zealand.
What changed
- Official Cash Rate (OCR): 3.5% (down 25 basis points)
- MPC decision: agreed to reduce the OCR by 25 basis points
Benefits and NZ Super Rise with the 1 Apr 2025 Annual General Adjustment
The Government confirmed that from 1 Apr 2025 most MSD payment rates increase through the Annual General Adjustment, by between just over 2% and around 3%, for around 1.5 million New Zealanders. Main benefits follow the Consumers Price Index (2.22% for the year to December 2024), and NZ Super rises by around 3%.
What changed (effective 1 Apr 2025)
- Increase range: just over 2% to around 3%
- Main benefits: in line with the Consumers Price Index, 2.22% for the year ending December 2024
- NZ Super and Veteran’s Pension: around 3% (linked to the net average wage)
- People affected: 933,200 superannuitants, 4,900 veterans, 409,300 main beneficiaries and 47,400 students
Student Allowance and Student Loan Living Costs Rise from 1 Apr 2025
StudyLink announced that student support rates, including Student Allowances and Student Loan living costs, increase on 1 Apr 2025 under the Annual General Adjustment, based on either the Consumer Price Index (2.22% rise) or the net average wage (3.51% rise). The maximum Student Loan living cost component becomes NZD 323.43 a week.
What changed (effective 1 Apr 2025)
- Student Allowance, under 24, at home: up to NZD 277.72 net (NZD 311.18 gross) a week
- Student Allowance, under 24, away from home: up to NZD 323.33 net (NZD 366.46 gross) a week
- Student Allowance, 24 or over, away from home: NZD 368.96 net (NZD 421.77 gross) a week
- Student Loan living cost component: NZD 323.43 a week maximum
- Adjustment basis: Consumer Price Index (2.22% rise) or net average wage (3.51% rise)
- Full new rate paid: from the week of 14 Apr 2025; Student Allowance changes apply automatically
ACC Earners' Levy Set at 1.67%, 1.75% and 1.83% for Three Tax Years from 1 Apr 2025
Inland Revenue published the ACC earners' levy rates set for three tax years: 1.67% (NZD 1.67 per NZD 100 of earnings) from 1 Apr 2025, 1.75% from 1 Apr 2026 and 1.83% from 1 Apr 2027, up from 1.60% for 1 Apr 2024 to 31 Mar 2025. The rates include GST, and the levy is deducted on earnings up to NZD 152,790, NZD 156,641 and NZD 160,244 in those years.
What changed (effective 1 Apr 2025)
- 1 Apr 2025 to 31 Mar 2026: 1.67%, NZD 1.67 per NZD 100 (from 1.60%); maximum earnings NZD 152,790 (from NZD 142,283)
- 1 Apr 2026 to 31 Mar 2027: 1.75%, NZD 1.75 per NZD 100; maximum earnings NZD 156,641
- 1 Apr 2027 to 31 Mar 2028: 1.83%, NZD 1.83 per NZD 100; maximum earnings NZD 160,244
- Maximum levy payable: NZD 2,551.59, then NZD 2,741.22, then NZD 2,932.47 (from NZD 2,276.52)
- GST: the levy rates include GST
RBNZ Cuts Official Cash Rate by 50 Basis Points to 3.75%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached a consensus on 19 Feb 2025 to lower the Official Cash Rate (OCR) by 50 basis points to 3.75%. The Committee said annual consumer price inflation remains near the midpoint of its 1–3% target band.
What changed
- Official Cash Rate (OCR): 3.75% (down 50 basis points)
- MPC decision: consensus to lower the OCR by 50 basis points
Adult Minimum Wage to Rise 1.5% to NZD 23.50 an Hour from 1 Apr 2025
The Government announced that the adult minimum wage will increase by 1.5% to NZD 23.50 an hour from 1 Apr 2025, with the starting-out and training minimum wages set at NZD 18.80, 80% of the adult rate.
What changed (effective 1 Apr 2025)
- Adult minimum wage: NZD 23.50 an hour from 1 Apr 2025 (up 1.5%)
- Starting-out and training minimum wages: NZD 18.80 an hour (80% of the adult rate)
RBNZ Cuts Official Cash Rate by 50 Basis Points to 4.25%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached a consensus on 27 Nov 2024 to lower the Official Cash Rate (OCR) by 50 basis points to 4.25%. The Committee said annual consumer price inflation has declined and is now close to the midpoint of its 1–3% target band.
What changed
- Official Cash Rate (OCR): 4.25% (down 50 basis points)
- MPC decision: consensus to lower the OCR by 50 basis points
RBNZ Cuts Official Cash Rate by 50 Basis Points to 4.75%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached a consensus on 9 Oct 2024 to reduce the Official Cash Rate (OCR) by 50 basis points, from 5.25% to 4.75%. The Committee said annual consumer price inflation is within its 1–3% target range and converging on the 2% midpoint.
What changed
- Official Cash Rate (OCR): 4.75% (from 5.25%)
- MPC decision: consensus to reduce the OCR by 50 basis points
RBNZ Cuts Official Cash Rate by 25 Basis Points to 5.25%
The Reserve Bank of New Zealand (RBNZ) Monetary Policy Committee (MPC) reached a consensus on 14 Aug 2024 to reduce the Official Cash Rate (OCR) by 25 basis points to 5.25%. The Committee said annual consumer price inflation is returning to within its 1–3% target band.
What changed
- Official Cash Rate (OCR): 5.25% (down 25 basis points)
- MPC decision: consensus to reduce the OCR by 25 basis points
Bright-Line Test Period Now 2 Years for Residential Property Sold from 1 Jul 2024
Inland Revenue, releasing an updated property tax decision tool, said the bright-line test changed on 1 Jul 2024: for a property sold on or after that date, the test looks at whether the bright-line end date is within 2 years of the start date. The test taxes any profit on a residential sale within that period unless an exclusion or rollover relief applies, and generally not a person's main home.
What changed (effective 1 Jul 2024)
- Bright-line period: 2 years between the bright-line start date and end date
- Applies to: properties sold on or after 1 Jul 2024
- What is taxed: any profit on a residential property sold within the bright-line period, unless an exclusion or rollover relief applies
- Main home: generally not subject to the bright-line test
FamilyBoost Childcare Payment Starts: 25% of ECE Costs Covered, up to NZD 975 a Quarter
Inland Revenue said on 1 Jul 2024 that FamilyBoost, a new childcare payment it administers, covers 25% of a household's early childhood education (ECE) costs, up to NZD 975 every three months, for households earning less than NZD 180,000 a year with children aged 5 and under. Claims for the July to September quarter open from the beginning of October.
What changed (effective Jul 2024)
- FamilyBoost payment: 25% of ECE costs, up to NZD 975 every three months
- Household income: less than NZD 180,000 a year; the amount reduces for income over NZD 140,000
- Children: aged 5 and under, with costs from a licensed ECE provider
- Registration and claims: register in myIR from mid-September; claim quarterly from October, starting with the July to September quarter
Paid Parental Leave Maximum Rises 6% to NZD 754.87 a Week from 1 Jul 2024
Employment New Zealand announced that parental leave payments increase by 6% from 1 Jul 2024 to reflect the rise in average weekly earnings, taking the maximum rate for eligible employees and self-employed parents from NZD 712.17 to NZD 754.87 gross a week. The minimum rate for self-employed parents rises from NZD 227.00 to NZD 231.50, equal to 10 hours at the adult minimum wage of NZD 23.15 an hour.
What changed (effective 1 Jul 2024)
- Maximum parental leave payment: NZD 754.87 gross a week (from NZD 712.17), up 6%
- Minimum rate, self-employed parents: NZD 231.50 gross a week (from NZD 227.00)
- Minimum rate basis: 10 hours at the adult minimum wage of NZD 23.15 an hour
Budget 2024 Lifts IETC Income Limit to NZD 70,000 and In-Work Tax Credit by up to NZD 50 a Fortnight
The Treasury's Tax at a Glance for Budget 2024, issued on 30 May 2024, extends the Independent Earner Tax Credit (IETC) of up to NZD 20 a fortnight to people earning up to NZD 70,000 a year (from NZD 48,000) and raises the In-Work Tax Credit (IWTC) by up to NZD 50 a fortnight per family, both from 31 Jul 2024.
What changed (effective 31 Jul 2024)
- IETC eligible income: NZD 24,000 to NZD 70,000 a year (upper limit from NZD 48,000)
- IETC full credit: up to NZD 20 a fortnight for income of NZD 24,000 to NZD 66,000, reducing up to NZD 70,000
- In-Work Tax Credit: up to NZD 50 a fortnight more per family, reducing as family income rises
- Minimum family tax credit: guaranteed minimum increased slightly
Budget 2024 Raises Income Tax Thresholds to NZD 15,600, NZD 53,500 and NZD 78,100 from 31 Jul 2024
Budget 2024, summarised in the Treasury's Budget at a Glance of 30 May 2024, raises personal income tax thresholds from 31 Jul 2024: 10.5% applies up to NZD 15,600, 17.5% up to NZD 53,500, 30% up to NZD 78,100 and 33% up to NZD 180,000. The 39% rate above NZD 180,000 does not change.
What changed (effective 31 Jul 2024)
- 10.5% bracket: NZD 0 – 15,600 (from NZD 0 – 14,000)
- 17.5% bracket: NZD 15,601 – 53,500 (from NZD 14,001 – 48,000)
- 30% bracket: NZD 53,501 – 78,100 (from NZD 48,001 – 70,000)
- 33% bracket: NZD 78,101 – 180,000 (from NZD 70,001 – 180,000)
- 39% rate: NZD 180,001 and over, no change
RBNZ Activates Debt-to-Income Limits and Eases LVR Restrictions from 1 Jul 2024
The Reserve Bank of New Zealand (RBNZ) confirmed on 28 May 2024 the activation of debt-to-income (DTI) restrictions and an easing of loan-to-value ratio (LVR) restrictions, which banks must comply with from 1 Jul 2024 on new residential lending. Banks may make 20% of new owner-occupier lending to borrowers with a DTI ratio over 6 and 20% of new investor lending to borrowers with a DTI ratio over 7.
What changed (effective 1 Jul 2024)
- Owner-occupier DTI limit: 20% of new lending to borrowers with a DTI ratio over 6
- Investor DTI limit: 20% of new lending to borrowers with a DTI ratio over 7
- Owner-occupier LVR limit: 20% of lending with an LVR above 80% (from 15%)
- Investor LVR limit: 5% of lending with an LVR above 70% (from 5% of loans with an LVR above 65%)
- DTI measurement: initial 6-month measurement window for banks
First Home Grant Ends: Kāinga Ora No Longer Accepting New Applications
The Government announced on 22 May 2024 that it is ending the First Home Grant, delivered by Kāinga Ora, which is no longer accepting new applications. Applications already received will still be processed, and pre-approvals stay valid for six months from the approval date; the First Home Loan and KiwiSaver first-home withdrawals are kept.
What changed
- First Home Grant: ended; Kāinga Ora no longer accepting new applications
- Applications already received: still processed
- Existing approvals: can still access the grant; pre-approvals valid for six months from the approval date
- Grant amount: a median of NZD 5,000 towards a house deposit
- Kept: the First Home Loan and KiwiSaver withdrawals for a first home deposit
Benefits, NZ Super and Student Allowances Rise with the Cost of Living from 1 Apr 2024
The Government said about 1.4 million New Zealanders receive increased payments from 1 Apr 2024 as benefits, NZ Super and student allowances rise in line with the cost of living, including 909,000 pensioners and 371,000 working-age beneficiaries.
What changed (effective 1 Apr 2024)
- NZ Super or Veteran’s Pension, couple: up NZD 71.08 a fortnight
- NZ Super, single person living alone: up NZD 46.20 a fortnight
- Jobseeker Support, couple with children: up NZD 56.48 a fortnight
- Sole Parent Support: up NZD 44.02 a fortnight
- Student allowance, under 24 living away from home: up NZD 27.94 a fortnight
- Childcare assistance, maximum weekly rate: NZD 319 (from NZD 305)
Tax Bill Passes: Rental Interest Deductions Restored, Bright-Line Cut to 2 Years, Trustee Rate 39%
The Government said the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill passed its third reading on 27 Mar 2024. It restores interest deductibility for residential investment property, reduces the bright-line test for residential property to two years and aligns the trustee tax rate with the 39% top personal rate, with a NZD 10,000 de minimis for lower-income trusts.
What changed
- Interest deductibility, residential investment property: restored
- Bright-line test, residential property: reduced to two years
- Trustee tax rate: aligned with the top personal rate of 39%; NZD 10,000 de minimis
- KiwiSaver on paid parental leave: government contributions for parents who keep contributing
- Commercial and industrial buildings: depreciation deductions removed
Government Agrees to Restore Rental Interest Deductions: 80% from 1 Apr 2024, 100% from 1 Apr 2025
The Government announced it has agreed to restore deductibility for mortgage interest on residential investment properties: 80% of interest expenses can be claimed from 1 Apr 2024 and 100% from 1 Apr 2025. The changes were to be added to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill.
What changed (effective 1 Apr 2024)
- Interest deductible on residential investment property: 80% from 1 Apr 2024
- From 1 Apr 2025: 100%
- Legislation: to be added to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill
Adult Minimum Wage to Rise 2% to NZD 23.15 an Hour from 1 Apr 2024
The Government announced that the adult minimum wage will increase by 2% to NZD 23.15 an hour from 1 Apr 2024, with the training and starting-out minimum wages remaining at 80% of the adult rate, rising to NZD 18.52.
What changed (effective 1 Apr 2024)
- Adult minimum wage: NZD 23.15 an hour from 1 Apr 2024 (up 2%)
- Starting-out and training minimum wages: NZD 18.52 an hour (80% of the adult rate)
- Workers affected: between 80,000 and 145,000
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