Raft of Govt’s schemes start today
Parent leave boost, free training deals among changes
Parents of newborns can get an additional month of paid leave as part of a raft of changes which start today. Some of the changes will put more money in New Zealanders’ pockets or provide relief, including higher pay for childcare teachers, free apprenticeships and lower building consent fees. Others will introduce new costs, including higher petrol bills and road-user charges.
Paid parental leave
Paid leave for parents rises from 22 weeks to 26 weeks, after rising to from 18 to 22 weeks in 2018. Extending paid leave was one of the coalition Government’s first law changes after it came into power in 2017.
The payment of up to $585 a week applies to families or carers of babies which are born from today , or had a due date of today. It will cost around $81 million a year.
The extension means NZ now has a more generous scheme than Australia, which offers 18 weeks.
Parents will also be able to work more hours while on leave without it being considered a return to work. The maximum number of hours will lift from 52 hours to 64 hours.
Petrol tax
The excise duty on petrol will rise from 66c a litre to 70c a litre. The higher fuel price will cost the average one-vehicle household around $35 to $40 more a year (or between 67c and 76c a week), according to the Ministry of Transport.
The Government has ruled out more increases in the next few years to provide relief after the global Covid-19 pandemic.
The Automobile Association has noted the rise could be “easier to swallow” because fuel prices are at their lowest levels since 2017.
Road user charges
Costs will also rise for drivers of diesel vehicles and truck drivers, who pay for the upkeep of New Zealand roads through road-user charges rather than fuel taxes.
Road-user charges are being raised from $72 to $76 per 1000km.
This extra funding will also go to the National Land Transport Fund.
Free apprenticeships
Apprenticeships and vocational courses in “critical industries” will be free over the next two years for all — not just for those eligible for the fees-free tertiary study scheme.
The Government is spending $1.6 billion on the scheme, which is partly to help people retrain if they have lost their jobs during the pandemic. Up to 100,000 students and apprentices could qualify for the funding.
ECE pay rise
Newly trained early childhood teachers will get pay increases of up to 10 per cent. It’s considered a first step in putting all qualified teachers in ECE on the same pay scales.
The move lifts minimum pay rates for non-kindergarten teachers by 6.5 per cent for those with a bachelor’s degree plus an early childhood qualification, whose minimum pay is now $46,832, or 9.6 per cent for those with only an early childhood degree or diploma, whose minimum is $45,491.
Refugee quota lifted
New Zealand will lift the number of refugees it takes from 1000 a year to 1500 a year.
As part of the higher quota, the induction programme for refugees at the Ma¯ngere Refugee Resettlement Centre will be reduced from six weeks to five weeks.
Six new locations for refugees have been confirmed in Ashburton, Whanganui, Timaru, Blenheim, Masterton and Levin.
Farm debt mediation
A new scheme is being introduced which will help farmers who are feeling financial pressure.
A neutral, independent mediator will be available to help farmers and creditors work through debt issues. Total farm debt is $62.8b — up 270 per cent on 20 years ago.
Cheaper building levy
Building consent costs will fall by around $80 for a new build.
This is because the building levy is being reduced from $2.01 to $1.75 per $1000 of consented building work.
As well as lowering the average new build cost, it will reduce the consenting costs of a $20 million commercial project by around $5200.