Changes announced in Budget 2024 - Work and Income (2024)

You can find more information about this on the Budget website:

Personal Income Tax thresholds

From 31 July 2024 the Personal Income Tax thresholds will be adjusted.

You can find the rates from 31 July here:

NZ Super and Veteran's Pension

From 31 July changes to the Personal Income Tax thresholds mean some people getting NZ Super and Veteran's Pension will get more in the hand if they're on 'M' tax code.

This means the NZ Super and Veteran's Pension after-tax rate may increase by up to $4.30 a fortnight if you are on 'M' tax code.

There are no changes if you are on the 'S' tax code.

This change will happen automatically – you don't need to do anything. Your first payment with the new amount will be paid on 13 August.

No change to main benefit payments

Main benefit payments will stay the same as these rates are set after-tax. This includes:

• Jobseeker Support
• Supported Living Payment
• Youth Payment
• Young Parent Payment
• Sole Parent Support.

FamilyBoost

FamilyBoost is a proposed new payment administered by Inland Revenue. It will partially reimburse parents or caregivers for early childhood education (ECE) fees charged from 1 July 2024.

It will be available to households earning under $180,000 a year who have dependent children aged 5 and under enrolled with licensed ECE providers. People getting payments from us, including childcare assistance, will be able to claim FamilyBoost if they have ECE costs for children in their care.

FamilyBoost will refund up to 25% of remaining ECE costs, after the 20 Hours ECE and any childcare payments from us. The maximum payment is $975 every 3 months.

In most cases, FamilyBoost will not have any impact on payments from us. You will not need to declare FamilyBoost as income or a cash asset unless you keep a payment (or part of it) for 12 months or more.

You will need to save ECE invoices from 1 July 2024.

You will be able to claim FamilyBoost every 3 months from 1 October 2024 by providing invoices to Inland Revenue.

There will be more information available soon on Inland Revenue's website.

Prescriptions

From 1 July 2024 the $5 co-payment for fully subsidised prescription items from publicly funded health providers (including public specialists) will return for everyone except for:

• people aged 65 and older
• Community Services Card holders
• under 14s
• 14–17-year-olds who are dependents of Community Services Card holders.

You don't have to be on a benefit to qualify for a Community Services Card – find out more about Community Services Card.

You will already have a card if you are getting a main benefit, Accommodation Supplement, Student Allowance or Veteran’s Pension.

Because you may be paying for your medication (when previously it was free), your Disability Allowance, Temporary Additional Support or Special Benefit may change. For example, if you have an increase in prescription costs, you may be entitled to more support.

When you have new costs, you can request an itemised receipt from your pharmacy for the last 12 months. This will mean we can make sure your costs are correct.

Apprenticeship Boost

Apprenticeship Boost is continuing beyond 31 December 2024 and will be available for the first year of an apprentice's training. It's a payment made directly to employers. This means apprentices can keep earning while training towards their qualifications.

Apprenticeship Boost encourages employers to take on new apprentices by helping cover the wages of hiring new apprentices. The changes will come into effect on 1 January 2025.

Housing changes

Emergency housing eligibility

The Government announced in March there will be changes to emergency housing. This is to ensure it is used as a last resort by those who have a genuine need. We are already having more in-depth conversations with clients about their housing situation.

Changes to clarify eligibility are planned from late August 2024. There will be more information available about these closer to the time.

Our existing emergency housing support services are continuing. These include housing brokers, ready-to-rent programmes and navigator services.

Read the Ministers' press release from March:

Payments from boarders

The Government has announced changes to how payments from boarders affect housing financial support, for example Accommodation Supplement, Temporary Additional Support, Special Benefit and Income Related Rent. These changes are planned to take effect from 2026.