ACT welcomes sensible, time-limited cost-of-living relief

“ACT welcomes sensible and proportionate cost-of-living relief funded from existing allowance. Helping working families this way is the most Government can do without adding to inflation for everyone else,” says ACT Leader David Seymour.

“The Fitch Rating outlook over the weekend showed there is no more money. ACT is very pleased Cabinet agreed that today's boost to the in-work tax credit stops when petrol is under $3, and is funded from Government’s existing allowance instead of extra spending,

“This support is targeted, time-limited, and designed to help people who must travel to get to work. At $50 a week, this will make a practical difference for 143,000 working families, but it won’t add pressure to inflation because it’s funded from existing spending allowance.

“This response avoids the kind of COVID blowout New Zealanders are still paying for. The previous Government spent all the money, and while we are still cleaning up that mess, it limits our ability to respond to new pressures. That means any support we provide now must be disciplined, affordable, and carefully designed.

“This package has the right features. It is time limited. It has an automatic offramp. It is funded from within the spending allowance. And it will be paid for with savings elsewhere, not by spraying more borrowed money into the economy.

“That is important, because Government has no money of its own. Every dollar it spends is taxed off New Zealanders today, or borrowed from future generations who will have to pay it back.

“This is not reckless spending and it will not add to inflation. It is a targeted measure that helps those who need it, without sending money to everyone regardless of circumstance, and without breaking the bank.

“New Zealanders expect the Government to respond when costs bite, but they also expect us to do it responsibly. This support strikes that balance.”