Global Daily Tax News, NZ Announces Tax Reliefs Amid High Energy Prices, (Mar 25, 2026)

To support households amid high energy prices, the New Zealand Government has announced a temporary increase to in-work tax credit payments.

The increase will apply from April 1, 2026, until March 31, 2027, or until the price of 91 petrol is below NZD3 per litre for four consecutive weeks, whichever is sooner.

The in-work tax credit will increase automatically by NZD50 a week, from NZD97 to NZD147 for those who are eligible to receive the full amount.

New Zealand's Finance Minister, Nicola Willis, said the Government will introduce an Amendment Paper to the Taxation Bill currently before Parliament, so the changes can be enacted from April 1. She said: "Most eligible households will not need to do anything to receive the increase. It will be paid directly into their bank accounts, starting on April 7 if they are paid weekly, and April 14 if they are paid fortnightly."

She said: "Funding the policy this way will not add to forecast debt or inflationary pressures. It is consistent with the Government's fiscal strategy which seeks to balance the books and bend the debt curve down.

"We cannot control global oil markets or international conflicts. But we can soften the impact on working families who cannot easily avoid higher fuel costs by delivering support in a responsible and well-targeted way."