The Government has announced a temporary increase to the in-work tax credit, aimed at easing cost-of-living pressures on low-to-middle-income working families as rising global fuel prices push household expenses higher.
From 7 April, around 143,000 working families with children will receive an additional $50 per week. The change will also extend eligibility to approximately 14,000 more families, who will receive the payment at a reduced rate. The measure is designed to run for up to one year, or until petrol prices for 91 octane fall below $3 per litre for four consecutive weeks.
Finance Minister Nicola Willis said the support is targeted at families who are working but not eligible for main benefits, and who are particularly exposed to increases in fuel costs. She said the policy aims to provide relief without adding to inflation or increasing government debt.
Legislation to enable the change will be introduced through an amendment to the Taxation Bill currently before Parliament, with implementation scheduled from 1 April. Payments will be made automatically to eligible households, starting on 7 April for weekly recipients and 14 April for those paid fortnightly.
The policy is expected to cost up to $373 million if it remains in place for the full year, with funding already accounted for in the Government’s 2026 Budget operating allowance. Officials say the time-limited nature of the measure ensures there will be no ongoing fiscal impact.
Willis said the Government’s approach focuses on targeted, temporary support to help families manage rising costs, while maintaining control over public finances amid ongoing global economic uncertainty.
WATCH: The government announces a new welfare package to assist with increased costs from the oil crisis – a $50 per week boost to the in-work tax credit, which will go to 143,000 low-middle income families with children. Total cost $373 million. pic.twitter.com/fJ353br5Ro
— William McGimpsey🇳🇿 (@TheZeitgeistNZ) March 24, 2026
