Eleanor Thompson Superannuitants, families, students, and beneficiaries will receive increased payments from today, with the government describing the changes as targeted relief amid global uncertainty and rising fuel costs.
By Eleanor Thompson
Managing Editor
Zealandia News
April 1, 2026 — WELLINGTON
More than one million New Zealanders will wake to increased financial support from today as a suite of policy changes and annual adjustments takes effect, delivering what the government describes as “sensible, measured” relief amid a sustained cost-of-living crunch driven by global energy volatility.
The changes, which include increases to New Zealand Superannuation, the family tax credit, Working for Families, student allowances, and main benefits, come into force on April 1 — the start of the new financial year. Finance Minister Nicola Willis confirmed the adjustments over the weekend, acknowledging that the global fuel-price surge triggered by the West Asia conflict was “hitting hard at home” .
“While the government can’t afford to ease all the pain, we are determined to keep progressing sensible, measured changes that provide some relief,” Willis said .
The timing is significant. The increases arrive as New Zealanders face higher costs at the pump, with petrol prices having climbed sharply following the escalation of hostilities in West Asia in late February. The conflict, which began after US and Israeli airstrikes killed senior Iranian officials, has disrupted global energy markets and raised fears of sustained inflationary pressure .
Who Benefits and by How Much
The largest group to benefit from the changes is New Zealand’s superannuitant population. Approximately 960,000 Kiwis receiving NZ Superannuation and the Veteran’s Pension will see their payments increase. For a married couple where both qualify, the fortnightly payment will lift by more than $50 to $1,708 — an increase of over $180 since the 2023 election .
Low-to-middle-income families are also in line for significant support. Around 280,000 families will receive an increase in the family tax credit. Eligible families with one child will gain an extra $400 a year, rising to $720 for families with two children and $1,050 for those with three .
A temporary measure announced last week will see 143,000 working families receive a further $50 boost per week for up to a year as part of the government’s targeted support to help with fuel costs. An additional 14,000 families will receive up to $50 per week .
Changes to the Working for Families abatement threshold — a Budget 2025 measure — also come into effect today, supporting around 142,000 families with an average boost of $14 per fortnight .
Students are not overlooked. Approximately 52,000 students receiving the Student Allowance will gain additional assistance, with a single person over 24 receiving an extra $22 a fortnight .
More than 435,000 working-age beneficiaries will see increased support. A single person over 25 on Jobseeker Support will receive an additional $22 a fortnight, while a couple with children will gain an extra $40 a fortnight on top of the family tax credit increase .
KiwiSaver Changes Take Effect
Alongside the benefit adjustments, April 1 marks the implementation of changes to KiwiSaver designed to encourage greater long-term saving. Default employee and employer contribution rates will increase from 3 per cent to 3.5 per cent, meaning Kiwis who choose to contribute at the default rate will be matched by their employers .
The government has emphasised that flexibility remains for those who cannot afford the increase. KiwiSaver members can apply to stay on the lower 3 per cent contribution rate if they choose .
Recent ASB research published in late March showed that despite global market uncertainty, most New Zealanders support the changes. The survey, conducted during the current period of volatility, found that 51 per cent of respondents plan to move to the new default rate of 3.5 per cent, while a further 19 per cent said they were already contributing at that level or higher .
ASB Senior Economist Chris Tennent-Brown noted that about two-thirds of Kiwis believe they need to be saving more for retirement. “It’s really positive to see that many are already making higher voluntary contributions to their KiwiSaver accounts, which shows confidence in long-term saving goals despite short-term uncertainty,” he said .
However, the research also highlighted a significant awareness gap, particularly among younger New Zealanders. Around one in four respondents aged 18–24 were unaware the changes were coming, prompting calls for continued education around retirement savings .
A Government Walking a Fiscal Tightrope
The April 1 increases come at a time of considerable fiscal constraint. The government has been at pains to frame the support as targeted and responsible rather than as a broad-based spending programme that could add to inflationary pressure.
Willis was explicit on this point in her weekend statement. “We know that responding with large, untargeted government spending programmes could make things worse for Kiwis by adding even more pressure to inflation and debt. We are making careful choices in order to protect New Zealand’s economic future” .
The minister acknowledged that the fallout from the West Asia conflict is likely to drive New Zealand’s inflation rate higher and growth rate lower than previously forecast. “The government is acutely conscious that the conflict in the Middle East is causing pain for Kiwis at the pump, and is leading to increased costs for businesses, goods and services across our economy,” she said .
Deputy Prime Minister David Seymour reinforced this message in a speech to the Wellington Chamber of Commerce on Tuesday, outlining the government’s approach to navigating potential fuel shortages and economic disruption. Seymour said there was “no point pretending the conflict in Iran was abstract or somebody else’s problem” given the impact on an isolated island nation like New Zealand .
Drawing lessons from the Covid-19 response, Seymour emphasised the importance of avoiding “the time trap” of crisis management that warps decision-making, maintaining fiscal discipline, and ensuring any response is done “with, not to, the people” . He noted that current fuel stocks remained robust and that demand-side restrictions would only be considered “if, and only if, there is a risk of running out” .
The 3G Era Ends
April 1 also marks the completion of New Zealand’s telecommunications transition, with Spark having completed its 3G network shutdown on March 31 — the final closure of all 3G networks in the country .
Spark’s Customer Director Greg Clark said the shutdown followed years of preparation, including upgrading all 3G-only cell towers to 4G or 5G, building more than 120 new towers since announcing the shutdown date in June 2025, and sending more than 4 million notifications to customers .
The company has also invested in an industry-wide mass awareness campaign and partnered with Digital Equity Coalition Aotearoa to provide community support . However, concerns remain about a small number of users — estimated in the thousands — who may still be using incompatible handsets, particularly those acquired through parallel imports or non-telco retailers .
Spark announced earlier this year that it would proactively block around 300 individual mobile phone models that could make standard calls and use data over 4G but could not support emergency 111 calls on the 4G network due to manufacturer-imposed limitations .
For customers still affected, dedicated support teams remain available, and the industry has an agreement in place where 111 calls will be carried by any available 4G or 5G network regardless of the customer’s provider .
Looking Ahead
As New Zealanders adjust to the new financial year and the raft of changes taking effect today, the broader economic picture remains uncertain. The West Asia conflict shows no signs of abating, and global energy markets remain volatile. The government has signalled that it will continue to monitor the situation closely, with further targeted support possible if conditions deteriorate.
For now, the focus is on delivering the increases announced and ensuring that those who need support can access it. The April 1 changes represent a significant injection of financial assistance into the economy at a time when many households are feeling the squeeze. Whether they will be sufficient to offset the rising costs of fuel, food, and other essentials remains to be seen.
In Brief
April 1 marks the implementation of significant financial support measures for more than one million New Zealanders, including increases to superannuation, family tax credits, student allowances, and main benefits. Default KiwiSaver contribution rates rise from 3 per cent to 3.5 per cent, though members can opt to stay at the lower rate. The changes come as the government walks a careful line between providing relief and avoiding additional inflationary pressure, with the West Asia conflict continuing to drive energy costs higher. The date also marks the completion of New Zealand’s 3G network shutdown, with Spark having switched off its remaining 3G infrastructure on March 31.
