Category: Politics

Source: Radio New Zealand

The Citizens Advice Bureau says people are going to need significant support as fuel prices continue to rise, and is hopeful whatever relief the government is set to offer will include support for those not in paid work.

Cabinet has signed off on what support the government will offer, with details to be released later on Tuesday.

The Finance Minister has hinted it would be targeted towards low and middle income families.

“It must be targeted, it must be timely, and it must be temporary and not drive inflation or debt higher, because as we steer New Zealand through this immediate challenge, we must also continue to look to the future and bend the debt curve down,” Nicola Willis said on Monday.

The fact the Inland Revenue Department and Treasury had been tasked with going over the options, and a previous admission from the government it would use existing mechanisms, indicated it could be looking at changes to Working for Families.

The In-Work Tax Credit (IWTC) was paid out depending on someone’s income, the weeks they worked, and how many children they had.

In April, the government would raise the abatement threshold (the income level at which the credit would reduce) from $42,700 to $44,900.

There was also the Independent Earner Tax Credit (IETC) for people earning between $24,000 and $70,000.

The IETC was designed to help people on lower to middle incomes that were not eligible for Working for Families.

People earning between $24,000 and $66,000 received a tax credit of $10 per week. It decreased by 13 cents for every dollar someone earned over $66,000.

Asked on Monday whether the abatement thresholds would be temporarily changed, Willis said she would wait to comment until the details of the package were announced.

The Citizens Advice Bureau’s national policy advisor Louise May said there were already “high levels of stress” amongst the client base, and the latest hike in the cost of living could plunge people further into hardship.

“We’ve got a lot of clients coming in for help who are just unable to make ends meet. That includes clients with work and those without, and we are really concerned that those clients are going to be in even more dire financial and material hardship situations,” she said.

May hoped both people in work and people receiving income support who did not have paid work were offered relief, and also called for relief for support services such as food banks and emergency accommodation.

“Any measure to increase money coming into the pockets of people who are struggling should definitely be looked at. One thing we’re really concerned about is the fact that there hasn’t been mention of families who don’t have paid work,” she said.

“We think it’s really important that any relief package that’s introduced as a result of this latest crisis also includes families and people who don’t currently have paid employment. They are the ones who are going to be most affected.”

May said it was not just about what people were paying at the pump, but rent and food prices were also high, and people were struggling.

Infometrics chief executive and principal economist Brad Olsen said changes to the IWTC or IETC would be quick and effective.

He said the difficulty of using the tax system was it would not be as easy for households to see the money come into their back pockets compared to a helicopter payment such as the 2022 Cost of Living Payment, but it would mean the government could run it out quickly and then run it back quickly.

“It does seem like probably the best way to move things through is to use the tax system. Whether or not it’s enough, any little bit will help at the moment, given the sorts of pressures that some households are under. I guess the most workable thing using the tax system around the Independent Earner Tax Credit and the In Work Tax Credit is that they can be targeted to those on lower incomes already, and so you are getting the support there through to people who probably need it most.”

Olsen said the government would be trying to balance providing support and limiting the costs.

“There’s no extra money in the system, and to fund whatever package the government is coming out with either requires an increase in debt or something else in the government system to be cut back on,” he said.

“They want to provide as much support as possible, but keep the limitations tight so they’re not sort of spending a huge amount. And for some people, that does mean that they will feel that they’re not getting the support they might expect from government. But equally, the wider you go, the more money it costs, and therefore at some point, the more the country has to repay.”

Olsen said one of the risks of using tax system changes was they were sometimes “so fiendishly complex” that households may not know what they were entitled to, and sometimes neither did the government.

“They get too much or too little, and then you only find out after the fact that they actually either deserve more, or sometimes in the worst case, they have to start paying this money back, which would almost be the complete opposite of what the government wants to try and support at the moment.

“So you want to, from a government point of view, try and balance these changes, to make them as absolutely blunt and simple as possible, to get that money out the door, to support those who need it, but also have it go through enough of a workable system, which is a more complex tax system that we have to try and provide that sort of targeted focus.”

Labour leader Chris Hipkins was reserving judgement on what the government would offer until he had seen the details, but said the “principle” was that it should be offered to all people on low and fixed incomes.

“Anyone on a fixed income or a low income is going to be suffering at the moment because of the high price of fuel. That includes superannuitants, it includes people living on benefits, it includes people caring for others and not currently earning an income, not just those who are on low incomes in the workforce.”

Hipkins would not, however, offer up what Labour would do differently if it was in power, saying it was up to the government to present a plan.

“At the moment, the onus has to be on the current government to lead the country through that,” Hipkins said.

The Green Party has proposed an urgent support package including free public transport, relief payments for low income and rural people to help meet additional transport costs, temporarily expanding eligibility for school buses and reversing cuts to school bus routes, reversing planned cuts to the Total Mobility Scheme, increasing mileage rates to care and support workers who receive well below standard IRD mileage, and a windfall profits tax.

Asked why the Greens could propose policies but Labour could not, Hipkins said minor parties could “promise a lot of things” during election campaigns.

“They get a lot more luxury to promise whatever they want, compared to the bigger parties,” Hipkins said.

In a post on social media on Monday night, Prime Minister Christopher Luxon said he had spoken with Singapore Prime Minister Lawrence Wong about what more they could do to deal with difficulties in fuel and other supply chains.

Luxon said about a third of New Zealand’s fuel was refined in Singapore and the two leaders agreed it was important to keep the trade of essential goods flowing between the two countries.

“We’re working hard to ensure New Zealand’s fuel needs are met amidst the conflict in the Middle East, which is causing disruption to supply and higher prices at the pump,” he said.

“When I visit Singapore in May, we will sign the Agreement on Trade in Essential Supplies, a deal that will help keep supply chains flowing for fuel, food and other products.

“Building on the great platform we’ve built with one another, we also talked about what further work our Governments can do together as we navigate through these supply chain challenges.”

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/24/government-set-to-unveil-details-of-fuel-support-package/

Source: Radio New Zealand

The finance minister will reveal “targeted and temporary” support for hard-hit families on Tuesday, as fuel costs continue to rise.

Nicola Willis gave notice of the announcement at Monday’s post-Cabinet media briefing, alongside Prime Minister Christopher Luxon and Associate Energy Minister Shane Jones.

Jones also announced plans to align New Zealand’s fuel standards with that of Australia, allowing the import of fuel destined for Australia to New Zealand instead.

Willis said the decisions on support had been taken at Cabinet, and while some of the details were still being worked out, that would not affect how quickly families could get it.

“This conflict is impacting just about every New Zealander, it has pushed up the price of petrol, diesel and jet fuel and those increases are already hurting our people and our businesses. Unfortunately the government is not in a position to mitigate that impact on everyone,” she said.

“The approach we are taking is consistent with the findings of the Royal Commission of Inquiry into the response to the Covid pandemic, which highlighted the damage that can be done by untimely, untemporary and untargeted spending.”

It was unclear when the support would be rolled out, with Willis saying that would be made clear when it was announced.

Motorists should fuel up as and when they needed to, she said, with the government’s solution set to target income rather than fuel prices.

‘No concerns’ about fuel supply

For now, there were no concerns about fuel supplies in New Zealand, she said.

“To date, all shipments have arrived as scheduled and fuel importers have not raised any concerns about shipments that are due here in future.

“It remains the case that we have to be prepared for the possibility of disruptions in the medium to longer term, particularly because the refineries in Southeast Asia from which we import more than 90 percent of our fuel may have challenges getting the feedstock crude oil that they need.”

Luxon said the country had at least enough fuel for the next seven weeks, although the government was preparing in case of long-term further disruption.

“If you are someone who has just faced a 30 percent increase in your fuel bill or a 60 percent increase in your diesel bill since the actual crisis, since this conflict has commenced, it’s real.

“We cannot do the Covid learnings and mistakes, which was just spray a heap of money around that has short term gain but long term pain – massive long-term pain – and equally we’ve got to find a way to get people support in a temporary, targeted kind of way.

“The reality is that we are not going to be able to alleviate the pressure of rising prices for everyone, but what we’ve been clear about are the parameters for any support that we provide, which is that it must be targeted, it must be timely, and it must be temporary and not drive inflation or debt higher.”

The latest data from Ministry of Business, Innovation and Employment showed stocks for about 47 days of fuel, including about 50 days worth of petrol, 46 days of diesel, and 45 of jet fuel.

The data, accurate to last Wednesday, marks about two days fewer than was reported last week.

One new fuel shipment arrived on Sunday, and two more – carrying between them another 20 days of each kind of fuel – are expected to arrive in the next fortnight.

The next update is due on Wednesday, but the ministry says New Zealand is not yet experiencing the kind of sustained disruption that would justify emergency measures under the national fuel plan.

Luxon said nothing had changed about New Zealand’s position on the Iran conflict, but that Iranians “holding hostage a whole bunch of ships to bring fuel and critical supplies … that’s not acceptable”.

“What we want to see is a quick resolution to this conflict and that means that actually respecting civilians and civilian infrastructure is really important … we think the best thing is de-escalation.”

Willis confirmed some consideration had been given to which industries could be prioritised if fuel rationing was needed, but this would not be revealed until a later date.

“We will not be having to hit the button tomorrow, but we will outline what our proposed phasing of response is … we recognise that it’s useful for people to understand what could be coming under a range of scenarios,” she said.

She noted the high prices would also naturally limit fuel use.

“It is pinching people’s pockets already and that is changing people’s choices. So Auckland transport have reported they had their biggest day of public transport use in seven years, I think that’s people deciding to use their cars a little bit less because it’s pretty expensive right now.”

‘Anzac pact’ in fuel and other standards

Jones outlined the government’s plan to temporarily allow fuel that meets Australian specifications to be supplied to the New Zealand market for up to a year.

Fuel companies had said this could allow them to secure shipments more quickly, and from a wider pool of suppliers.

Jones said long-range vessels typically carried about 120 million litres, and New Zealand consumed about 24 million litres of fuel a day – with about 47 percent of that being diesel, about 35 percent being petrol, and the remainder being aviation fuel.

“Should such a vessel be on its way to Australia then we would have the ability to also benefit from such a vessel.”

He said fuel refined to Australian standards was compatible with New Zealand vehicles, and met safety and quality expectations, pushing back on the suggestion it would allow dirtier fuels than under current standards.

“It’s unkind of us to refer to our Aussie compatriots as dirty,” he said. “There’s two things – whether or not fuel used in a high-temperature northern Australian environment, we are advised that a lot of that fuel is suitable for the North Island … with the South Island the fuel importers assure us that they will have the optionality to service both of those markets.”

He said officials had spoken to Australian counterparts.

“We pushed the idea that at some point in time we should explore and ANZAC pact and I would say to you this is the first step that we’re taking to join forces.

“It’d be fair to say that I’ve got a fair degree of support in our Cabinet to actually move towards permanent harmonisation of not only these standards but a variety of other standards in the economy.”

Willis and the associate ministers of finance would make further improvements, he said.

The government would not follow Australia’s lead in relaxing standards to allow higher-sulphur fuel, he said, at least not yet.

“At this stage it’s not our intention to do so, however, we will take advice should the situation change – and that could be an option that expands our supply.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

LiveNews: https://nz.mil-osi.com/2026/03/23/fuel-cost-crisis-govt-to-unveil-targeted-and-temporary-support-tomorrow/