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The BulletinMarch 31, 2023

The big changes coming on April 1

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A pinch and a punch for the first of the month – and for higher minimum wages, increased benefits, new Covid boosters and more, writes Catherine McGregor in this excerpt from The Bulletin, The Spinoff’s morning news round-up. To receive The Bulletin in full each weekday, sign up here.

All change for autumn

It’s not news to those of us in the South Island who shivered through bitterly cold temperatures this week, nor to the long-suffering Cook Strait ferry passengers whose crossings were cancelled due to high winds and swells: like it or not, autumn is well and truly here. The leaves are changing, and so too are a raft of welfare, health, employment and electoral rules affecting nearly all of us. As the start of a new tax year, April 1 is the standard date for the government to introduce changes that will affect New Zealanders’ back pockets. This year, the minimum wage is one of them, rising by $1.50 to $22.70 an hour. It’s a 7% increase, broadly in line with average wage growth – which appears to now be stalling – meaning its impact on both unemployment and inflation itself will be limited, economists believe. Employers’ group Business NZ says despite  assurances, it’s concerned about a wage-price spiral in which businesses raise their prices to cover their increased wage bills. “I know they say it doesn’t have an impact on inflation but it’s gone up year-on-year. Small to medium businesses are the ones that struggle,” spokesperson Catherine Beard told Stuff.

Hikes to super, childcare subsidies and other benefits

Benefits and payments are also going up this weekend. Main benefits such as the jobseeker allowance will rise this year by the rate of inflation, rather than being pegged to the increase in net average wage – an extra 0.98% in the hand. Superannuitants will get this larger increase, with couples receiving around $100 more a fortnight after tax, and individuals about $70 more. Income thresholds for childcare assistance are increasing too. The government says 10,000 more children will be covered, and more than 50% of all New Zealand families with children will now be eligible for subsidised childcare.

Bivalent boosters open to (almost) all

A month after they were first introduced to New Zealand, bivalent boosters will be available to more people, with the expansion of eligibility for the second booster. From April 1, anyone aged 30 or over will be able to get the shot, as long as it’s been at least six months since their first booster. The bivalent booster is designed to target both the original and omicron strains, but the so-called “Kraken” subvariant is now dominant in New Zealand. Covid expert Michael Plank says bivalents will still be more effective than previous boosters. “It’s like a photo of the virus’s twin brother or sister rather than a distant cousin,” he said. Charlotte Muru-Lanning has an extremely useful explainer covering the bivalent boosters and expanded eligibility on The Spinoff this morning.

Making it easier for Māori to switch electoral rolls

Finally, and a day earlier than the rest, is a change to the Māori electoral option. From today, Māori who are enrolled to vote can change their electoral roll from general to Māori (or vice versa) any time except in the three months before an election. Back in November this law change passed with 75% support from parliament – a high threshold that was required because it applied to legislation within the Electoral Act. The Electoral Commission is today launching a public information programme to let Māori know about the change.

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