Dear John,

 

We’re scrapping surcharges at the till because Kiwis are paying too much.
 
Every year, New Zealanders pay up to $150 million in surcharges almost every time they tap their cards or use their mobile phone to pay. That’s money that could be saved or spent elsewhere. We’re also supporting small businesses through this change, with new rules to lower payment processing costs and making it easier to shop around for the best deal from banks and payment providers.
 
National’s long-term economic plan is starting to get New Zealand’s economy back on track. Average economic growth is expected to be 2.7% per year creating 240,000 jobs over the next four years. In the interim, we are pulling every lever we can to help Kiwis deal with the cost of living. Stopping surcharges is a practical step to bring more fairness and certainty to everyday spending.
 
This week also marks one year of tax relief, meaning the average household is $1,560 better off. On top of that we introduced FamilyBoost, which now gives families up to 40 per cent off their childcare costs, removed the Auckland fuel tax, introduced 12-month prescriptions, increased rates rebate for 66,000 seniors and increased Working for Families payments.  
 
We’re also growing the economy by stopping wasteful government spending and getting inflation under control. Inflation has dropped from a peak of 7.3 per cent to 2.7 under National. This has meant a family re-fixing a $500,000 mortgage today will save around $300 per fortnight compared to September 2023. We have also driven rent inflation down.
 
Long term we know the most important thing we can do to help Kiwis get ahead is create an economic environment that leads to increase wages. 
 
That is why this Government is focusing on five key areas:  Developing talent, ensuring business settings are competitive, promoting global trade and investment, supporting innovation, technology and science: and providing a pipeline for infrastructure growth. 

 

Nicolla Willis 

Spokesperson for Finance