Everything you need to know about benefit rises, KiwiSaver changes and the minimum wage.

The changes coming for your bank account on April 1

Everything you need to know about benefit rises, KiwiSaver changes and the minimum wage.

Numbers, numbers, numbers. Everywhere you look it feels like they’re going up – especially the ones you want to go down. They’re up at the petrol pump, along the dairy aisle and when it comes to the unemployment rate. Come April 1, when many of the changes announced by the government in Budget 2025 come into effect, more numbers will be on the rise too.

OK, hit me!

If the economic horrors were too much and you blocked out 2025, KiwiSaver changes were announced last year and they come into effect on April 1. The default contribution rate for employees and employers rises from 3% to 3.5%. If you’re among the more than one million people currently on the minimum contribution rate and you haven’t applied for a temporary rate reduction, then your contribution will automatically increase to 3.5% and your employer needs to match it.

It’s the latest in a range of changes to KiwiSaver, which saw the government contribution rate halved last July and eligibility restrictions applied.

There are close to 3.5m New Zealanders signed up to the voluntary saving scheme, according to February IRD data.  Just over 161,000 of those are under the age of 18, down from just over 368,079 in June 2015. Those young people will benefit from another KiwiSaver change on April 1 – they become eligible for the mandatory employer contributions. 

So more money in my KiwiSaver, got it. But what about my take-home pay?

The minimum wage is going up, so if you’re one of the country’s 122,500 workers earning the lowest legal wage, there’s good news. The hourly rate will rise from $23.50 to $23.95. Working a 40-hour week? You’ll now be collecting $940, an increase of $18, before things like tax and student loan repayments are deducted.

But I’m on $23.90.

Don’t worry. Your wage will be going up as well, to meet the new minimum. The lowest adults can now be paid per hour is $23.95. Employees can expect a letter from their employer confirming the new pay rate.

And what about the greenhorns?

Good news, their wages are going up too! The hourly pay rate for starting out and training wages will rise from $18.80 an hour to $19.16. The starting out rate applies to people between the age of 16 and 17, although there are some caveats around employment duration and industry training. Training minimum wage applies if you’re over 20 and have to complete credits or an industry training programme as part of your employment agreement – apprenticeships often fall under this umbrella. (It’s worth noting that New Zealand’s minimum wage doesn’t apply to under-16-year-olds.)

Right. What other increases are we looking at?

ACC earners levy rates are going up on April 1 from $1.67 per $100 earned to $1.75. The maximum levy payable will rise too, from $2,551.59 for maximum earnings of $152,790 to $2,741.22 for a $156,641 threshold.

If you’re an employee your levy will be deducted as part of your PAYE and will be taken off your wages or salary before it comes to you. If you’re self-employed or a contractor, you have to pay your own levies, worked out after you file your annual tax return. This can be done by credit or debit card, online banking, direct debit or via the MyACC portal.

Thanks for the reminder! What about students?

Good question. If you’re receiving a student allowance, it should go up automatically from April 1. Let’s take a look at the new rates. A single student under the age of 24 living away from home with no dependents will now receive $333.38 after tax, up from $323.33 in 2025. A student with at least one child and no partner will receive $535.97 after tax, up from $519.81. 

And another avenue for financial assistance while studying also gets a look in; the living costs payment under the student loan scheme (that’s the one you have to pay back) is increasing to a maximum of $333.48, up from $323.43.

Hmm $10 a week. OK, is that all?

Nope, there’s more. Some payments from Work and Income will be going up automatically on April 1 as well, due to the annual general adjustment. Most benefits are pegged to the Consumer Price Index, however some, including the pension, are adjusted according to after-tax wage growth and inflation.

Superannuation payments for a married couple will increase by $50 a fortnight. All up, the government estimates 964,200 New Zealanders receiving super – or the veterans pension – will see a boost to their bank accounts.

The thresholds for some of the government’s financial support are shifting. Best Start is one. Payments for a baby’s first year of life are going up from $73 to $77 a week, with a $4041 limit. However, if you have a child on or after April 1, then your $77-a-week payment will be reduced if the family income goes over $79,000. This is another change. It brings the first year of life in line with the second and third, where that threshold already applies.

The government is also lifting the threshold for rent/board payments to qualify for the accommodation supplement. For example, if you’re a sole parent receiving the jobeeker benefit, your thresholds will go from $163 to $168.

Childcare assistance rates are going up too, as is the disability allowance, which covers ongoing costs. It’s rising from a non-taxable maximum rate of $80.35 a week to $82.85 from April 1. The income limit for that will increase at the same time. So will the supported living payment, increasing from $411.80 per week, after-tax, for a single person over 18 to $424.60. (Rates vary depending on your situation).

Income thresholds to qualify for a community services card will change. A couple must earn no more than 59,694 (if receiving super) and $55,501 (no super) to get the card. Individuals living alone can’t earn more than $39,796 (if receiving super) and $37,116 (no super) to qualify.

The Working For Families tax credit threshold is also going up. This will see eligible families receive $147 a week, up from $97, to a maximum limit of $7670 per annum. About 143,000 families are expected to receive $50 more a week to help with the pressure of petrol prices. Should the cost of petrol drop below $3 for four straight weeks (fuel crisis abated!) the credit will return to $97.

Speaking of petrol… Is that going up too?

Let’s not even talk about it.