Relief at the pump, but that’s not the only change coming into effect today, writes Stewart Sowman-Lund in this extract from The Bulletin. To receive The Bulletin in full each weekday, sign up here.
Fuel is a little bit cheaper (in Auckland)
It’s somehow already July 1, a day that tends to be quite important as new government initiatives kick in. This year is no different, as the Herald’s Front Page podcast looked at before the weekend. Arguably the biggest headline grabber impacts only Auckland, with the last government’s regional fuel tax removed overnight. Prime minister Christopher Luxon said dumping the tax, which amounts to 11.5 cents per litre, would help reduce cost of living pressures, while transport minister Simeon Brown told Newstalk ZB that any unspent tax take would go towards priority projects, including the Eastern busway and local roading upgrades. The AA has warned fuel companies it will be keeping a close eye to ensure they pass the savings onto drivers, reported RNZ. It’s welcome relief at the pump, no doubt, but it’s worth remembering the government’s long term transport plan includes raising fuel excise by 12 cents in 2027, and a further 10 by 2029, as confirmed just last week.
The other changes that could save – or cost – you money
It’s still a few weeks until the government’s long-touted tax cuts come into effect, but there are other measures kicking in today. Newshub’s Alexa Cook wrapped those last night, reporting that the government’s childcare subsidies kick in today, while 1News laid out the increase to paid parental leave. It’s bumping up to a maximum of $754.87 a week. That one is a legislated annual increase to keep the support in line with average weekly earnings, so while governments of all stripes try to claim responsibility, they can’t really. One change the government can take credit for is the adjustment to the brightline test, bringing it back down to two years. Since 2021, capital gains could be taxed when an existing property that was not a main home was resold within a decade. The Post’s Miriam Bell looked at the pros and cons of this somewhat controversial move earlier in the year.
Also in The Post this morning, Frances Chin looks at the changes to debt-to-income rules, with property buyers able to borrow up to six times their annual income for a house. In Auckland, the Herald’s Bernard Orsman noted today also marks a rise in rates and water bills for homeowners.
How things are tracking
As I said at the top, July 1 is routinely a day when significant changes come into effect. RNZ’s Susan Edmunds looked back at some of last year’s changes and how they are faring after 12 months. Perhaps the shortest lived of those is the Labour government’s decision to scrap the $5 co-payment for prescriptions, which is being reinstated by the coalition today for most people (initially, this was meant to help pay for new cancer drugs, but in reality it will just help make budget ends meet). Other changes, such as the ban on single-use plastic products like straws, appear to have a longer life ahead. Edmunds wrote that while the proposal was criticised by some for potentially adding costs to small businesses, it has ended up having a minimal impact on expenses for restaurants.
It’s also now two years since Labour’s sweeping health reforms took place, merging DHBs under the banner of Te Whatu Ora. This group think on The Spinoff published a year ago checked in on how the new health agency was going and reported a lot of negativity. “In my 40-odd years of nursing, never have things been so bad, so short-staffed, so stressed,” said a paediatric nurse in Waikato. Things remain fairly rocky in the health sector, as illustrated by a new report that noted ongoing shortages in the workforce. Te Whatu Ora’s director Amy Adams has just finished her term, saying she was “not able to advance the changes” that she believed needed to be made.
Meanwhile, the government is celebrating the opening of a new surgical facility at North Shore Hospital today that will have capacity for 15,000 operations a year once fully staffed.
Another action plan comes to an end
The weekend also marked the end of the coalition’s second action plan period, part of Christopher Luxon’s rather business-like way of managing government. The Herald’s Derek Cheng took a look at the government’s progress over the latest quarter, reporting that a few of the 36 objectives are yet to be ticked off, including decisions around increasing investment in renewable electricity generation. Though, noted Cheng’s colleague Adam Pearce, the government could claim it has taken decisions behind closed doors and opted not to make them public. Expect to hear more on this at today’s post-cabinet press conference – I’m particularly excited to hear what yardstick can be used to measure if the “energy” was raised in international relations. All going to plan, we’ll have another government action plan to discuss this time tomorrow morning. In the meantime, if you need it, The Spinoff’s Gabi Lardies has this helpful guide on how to make your own personal action plan. It’s filled with exceptional advice.