Superannuation and 'main' benefit payments will increase by 3.75% from April 1 to keep pace with rising costs, Prime Minister John Key and Social Development Minister Paula Bennett announced on Monday afternoon.
However, the rise includes the 2.02% rise in payments in October last year as compensation for the rise in GST, which was raised from 12.5% to 15% on October 1, 2010.
See the release from Social Development Minister Paula Bennett:
Social Development Minister Paula Bennett says benefit and superannuation payments will increase for more than one million New Zealanders from April.
“We’ve locked the Annual General Adjustment into legislation to give some certainty and to ensure payments keep pace with rising costs,” says Ms Bennett.
Main benefits, Superannuation and Student Allowance rates will all increase from April 1 to reflect increases to the Consumer Price Index.
Main benefits will increase by 3.75% from 1 April 2010 to 1 April 2011, this includes the GST compensation component of 2.02% added in 1 October 2010.
“The percentage increase will be slightly higher for married couples receiving NZ Superannuation,” says Ms Bennett.
Married rates will increase by 6.85%.
This ensures married rates continue to equal 66% of the average net wage.
The net rate paid to couples receiving NZ Superannuation will rise by just over $22 a week.
9 Comments
It's easy Andy..it floats on a tide of other people's money...soon to cost more...welcome to the permanent state of stagflation...didn't they do well. Now away you go and earn the money or collect the benefits to feed the banks which milk the country with govt support.
Update on this:
The rate at which the War Disablement Pension and Veterans’ Pension are paid will increase from 1 April as part of the annual cost of living adjustment, Minister of Veterans' Affairs Judith Collins said today.
The War Disablement Pension and Veterans’ Pension will increase 3.75% from 1 April. This rise reflects increases to the Consumer Price Index (CPI).
“The increase in the rate of the War Disablement Pension and Veterans' Pension helps to compensate veterans for the rise in living costs,” Ms Collins said.
Examples of the increases are:
A veteran on a 100% War Disablement Pension will now receive a tax-free payment of $199.05 per week, in addition to the Veterans’ Pension which is paid at the same rate as NZ Superannuation, or any other assistance such as a living alone or disability allowance.
A veteran over 60 with a severe disability may receive up to $350.34 per week in addition to the Veterans’ Pension and/or other allowances.
All war pension payments are tax free and paid in addition to employment income or other financial assistance such as NZ Superannuation or the Veterans’ Pension.
Other pensions and allowances, such as the Surviving Spouse’s Pension, Travelling Allowance, Clothing Allowance, Attendant’s Allowance and War Bursaries are also available in addition to the War Disablement Pension and the Veterans’ Pension.
Another update:
A Grey Power claim that the Government has ended compensation built into their superannuation for last year’s rise in GST is wrong as the compensation is there to stay, Revenue Minister Peter Dunne said today.
“The compensation given to superannuitants when the GST rise came in on 1 October last year was both immediate and permanent. It is now built into their payments and will remain so through further adjustments as they occur,” Mr Dunne said.
“At the time of the rise in GST, the Government committed to the compensation never running out or expiring as it would be built into future adjustments to superannuation, including in the CPI adjustment on 1 April this year."
Mr Dunne said superannuitants had had substantial rises in the past two years.
The total married rate for NZ Superannuation, after tax, has increased from $879.60 on 30 September 2008, to $1022.12 on 1 October 2010.
“That's an increase of $142.52 a fortnight – or 16.2% in just two years, with another CPI adjustment to come on 1 April this year,” Mr Dunne said.
“Very few wage and salary workers will have received such a big increase.”
Hmmm...let's see...make the hard decisions...the "right" decisions...and lose the next election, because the massive majority of voters perceive their super being threatened...OR...tell that massive majority of voters that not only are you not threateneing their super, but are in fact going to increase it...and guarantee your relection.
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