Budget 2022: What you need to know

Various NZ dollar notes (file image)

Budget 2022 is out – here are the big announcements.

  • New 'cost of living payment' for people earning up to $70K. This is a temporary payment for people not entitled to the Winter energy payment. It will be paid across three months from August, totalling $350.
  • The fuel tax and road user charge reduction, as well as half price public transport is to be extended for two months. Ongoing half price public transport for community service card holders.
  • Urgent new law to go through Parliament to try to reduce grocery prices by introducing more competition. The new rules will stop supermarkets from blocking competition from accessing land to open new stores, Finance Minister Grant Robertson said.
  • $3.1b for Health NZ over two years, $168m for Māori Health Authority over four years, $191m over two years for Pharmac to buy medicines, 248 new paramedics.
  • The rule will be scraped that denies sole parents on benefits their child support payment. Governments over decades have been denying sole parents on benefits "money that is rightfully theirs", with an estimate the changing the rule will pull thousands of children out of poverty.
  • Emergency dental grants increase from $300 to $1000.
  • House price caps for First Home Loans removed.

READ MORE: Budget 2022: Cost of living payments, public transport extended, $3.1b health boost

The high cost of living saw Budget 2022 introduce a new weekly payment for people earning up to $70K, a two-month extension to the fuel and public transport cuts, and urgent changes to the supermarket sector intending to drive down prices.

The new centralised health system – Health NZ will get a $3.1b injection over two years, while the new Māori Health Authority gets another $168m over four years.

Budget 2022 brings in a new temporary payment for people struggling with the cost of living.

READ MORE: Budget 2022: Cap on First Home Loan scheme scrapped

It means people earning up to $70,000, who are not able to get the Winter Energy Payment, will be entitled to three monthly payments from August, receiving a total of $350. It will be about $27 extra a week over the three-month period.

Finance Minister Grant Robertson said Treasury suggested high inflation would have "more of an immediate impact on low- and middle-income households than on high income households".

It'll cost the Government $814 million, while the fuel relief extension will cost $235m and public transport changes will cost $130m.

"What we're dealing with here is targeted support," Robertson said.

"By undertaking a short term, targeted payment we can relieve some of the pressure they're feeling."


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