The costs to the taxpayer from benefits have fallen due to benefit reforms. The latest valuation current lifetime liability of the New Zealand welfare system estimates the liability at NZD76.5bn, a fall of NZD10.3bn. The saving came from having fewer people on benefits, fewer sole parents taking up benefits and more ceasing to claim over the course of 2013. It also reflects the reduced projected cost of supporting young people. Reforms in the past two years modified the past system of seven categories to three main benefits in July 2013, and have removed unemployment, sickness and domestic purpose benefits.
Related Posts
New Zealand cuts UOMI rates on tax underpayments and overpayments for 2026
New Zealand's Inland Revenue (IRD) has reduced interest rates on tax payments effective 16 January 2026. The underpayment rate dropped to 8.97% from the previous 9.89%, while the overpayment rate decreased to 2.25% from 3.27%. The earlier
Read MoreNew Zealand consults tax framework for off-market share cancellations
New Zealand's Inland Revenue has released a draft Operational Statement for public consultation addressing the bright line tests used to classify off-market share cancellations as either taxable dividends or non-taxable capital returns. This
Read MoreNew Zealand: Government announces 2026 budget date
The New Zealand Government will present its 2026 Budget on 28 May 2026, outlining its financial intentions for the 2026โ2027 fiscal year, Finance Minister Nicola Willis announced on 28 January 2026. โThe focus of this yearโs Budget will be
Read MoreNew Zealand: Inland Revenue updates guidance on Crypto-Asset Reporting Framework
New Zealandโs Inland Revenue has issued updated guidance on the Crypto-Asset Reporting Framework (CARF) on 16 January 2026. The Framework, developed by the OECD to increase the visibility of activities in the crypto-asset sector, will take effect
Read MoreChile: SII publishes circular on MFN clause activation in tax treaties with five countries
Chileโs tax authority (SII) issued Circular No. 65 on 3 December 2025, addressing the activation of Most-Favoured-Nation (MFN) clauses in Chileโs tax treaties with Belgium, New Zealand, Norway, Switzerland, and Uruguay. These clauses are
Read MoreNew Zealand: Inland Revenue consults shareholder loans
New Zealand Inland Revenue launched a public consultation on 4 December 2025 on the taxation of company loans to shareholders. The consultation proposes a new 12-month time limit, under which certain shareholder loans would be treated as
Read More