Is more means testing on the cards after big Budget changes?
'It's, of course, a way of keeping a lid on costs, and it also just aligns with the philosophy of a right-leaning government versus a left-leaning one, which is just less state support, and a little bit more take care of yourself.'
Perhaps suggesting it's more about the political philosophy than cash flow, Tibshraeny says the savings from the KiwiSaver means testing, in particular, are meagre.
'The Inland Revenue reckons means testing that government contribution would only save $40 million a year. That isn't much money at all for the government.'
She says the policy went against official advice.
'The officials advised the Government to just scrap the government contribution altogether rather than means test it. It would've gone down like a lead balloon with the public if politicians did that.'
In fact, that wasn't the only policy that eschewed official advice. The Government was also warned against raising the default KiwiSaver contribution rate in the current economic climate.
'They were worried about the impact it would have on businesses and thought that it might actually offset some of the positives in terms of what the Government's trying to do to stimulate growth and support businesses.'
Tibshraeny says means testing can annoy some voters, but in recent conversations she's had with the new head of the Treasury, Ian Rennie, there seems to be an appetite for it.
'He talked a lot about the need for means testing, and I just guess the cost of having all these universal policies - the Government giving money to people who don't really need it.'
Listen to the full episode of The Prosperity Project for more
The podcast is hosted by Nadine Higgins, an experienced broadcaster and a financial adviser at Enable Me.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts. New episodes are released every Monday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
4 hours ago
- Scoop
Bringing Families Together With Parent Boost
The Government is delivering on its commitment to support parents living offshore to visit and stay with their families in New Zealand for longer, Prime Minister Christopher Luxon and Education Minister Erica Stanford say. Beginning in September, a new 'Parent Boost' visa would grant the parents of New Zealand citizens and residents multi-entry access for up to five years, provided they meet specific health, income, and insurance requirements. 'In order to drive economic growth, we need to incentivise skilled migrants to choose New Zealand,' Prime Minister Christopher Luxon says. 'Ensuring we continue to attract the right people with the skills this country needs will deliver significant economic and social benefits for all New Zealanders.' 'We know that a longer-term visitor visa for parents is an important consideration for migrants who are deciding where they want to build their lives,' Immigration Minister Erica Stanford says. 'Whether it be welcoming a new child, additional support during health challenges or providing childcare so parents can work, there is nothing quite like having family support close by.' 'We are proud to deliver this coalition agreement between National and ACT, which will make the New Zealand proposition more appealing and more competitive.' To be eligible for a Parent Boost visa, applicants must: have an eligible sponsor who is a New Zealand citizen or resident meet Acceptable Standard of Health requirements demonstrate they have at least one year of health insurance coverage which provides emergency medical cover (of at least up to $250,000), repatriation, return of remains and cancer treatment (of at least $100,000) and maintain this insurance for the entire duration they are in New Zealand meet character requirements and be a bona fide / genuine visitor while offshore during the 3rd year of the multiple entry visitor visa, complete a new medical assessment and demonstrate they have maintained their insurance One of the following income requirements must also be met: The sponsor must earn the median wage to sponsor one parent, joint sponsors must earn 1.5x the median wage; or The parent/s have an ongoing income aligning with the single rate of New Zealand Superannuation for a single parent and the couple rate for a couple; or The parent/s have available funds of $160,000 for a single parent and $250,000 for a couple to support themselves for the duration of their visa 'The Parent Boost Visa strikes the balance of making New Zealand more attractive for people who want to make our beautiful country their home, without putting additional strain on public services,' Ms Stanford says. 'We are committed to delivering an efficient and predictable immigration system that drives economic growth to take New Zealand forward.' Parent Boost applications open on 29 September 2025. The sponsor must also remain living in New Zealand while visa holder is onshore and are liable for any costs incurred in relation to the visa holder during the visa duration Applicants will be able to renew the visa once, meaning the maximum length of their visit could be 10 years. People will need to spend three months out of New Zealand prior to getting their second Parent Boost visa.
1News
9 hours ago
- 1News
'Parent boost' visa offers five-year access for migrant families
Parents of New Zealand citizens and residents will be granted multi-entry access for up to five years if they met health, income, and insurance criteria when the Government introduces a new longer-term visitor visa in September. Prime Minister Christopher Luxon and Immigration Minister Erica Stanford announced the Parent Boost visa this afternoon, saying the Government was delivering on its commitment to support parents who live overseas to visit and stay with their families for longer. The visa may be renewed once, allowing a total stay of up to 10 years, provided the holder spends at least three months outside New Zealand before obtaining the second visa. Luxon said skilled migrants needed to be incentivised to choose New Zealand to drive economic growth. "Ensuring we continue to attract the right people with the skills this country needs will deliver significant economic and social benefits for all New Zealanders." ADVERTISEMENT Stanford said a longer-term visitor visa for parents was an "important consideration" for migrants when choosing where to build their lives. "Whether it be welcoming a new child, additional support during health challenges or providing childcare so parents can work, there is nothing quite like having family support close by." To be eligible for the Parent Boost visa, applicants must have: An eligible sponsor who is a New Zealand citizen or resident Meet Acceptable Standard of Health requirements Demonstrate they have at least one year of health insurance coverage which provides emergency medical cover (of at least up to $250,000), repatriation, return of remains and cancer treatment (of at least $100,000) and maintain this insurance for the entire duration they are in New Zealand Meet character requirements and be a bona fide / genuine visitor While offshore during the 3rd year of the multiple entry visitor visa, complete a new medical assessment and demonstrate they have maintained their insurance. One of the following income requirements must also be met: The sponsor must earn the median wage to sponsor one parent, joint sponsors must earn 1.5x the median wage; or The parent/s have an ongoing income aligning with the single rate of New Zealand Superannuation for a single parent and the couple rate for a couple; or The parent/s have available funds of $160,000 for a single parent and $250,000 for a couple to support themselves for the duration of their visa. Stanford said the new visa struck the balance between making New Zealand attractive for migrants and not putting additional strain on public services. "We are committed to delivering an efficient and predictable immigration system that drives economic growth to take New Zealand forward." Applications for the Parent Boost visa open on September 29.
RNZ News
11 hours ago
- RNZ News
Government announces new 'Parent Boost' visa to bring families together
Immigration minister Erica Stanford. Photo: RNZ / Samuel Rillstone Parents of New Zealand citizens and residents will be able to access visas, with the government announcing a programme it says will bring families together. From September, parents will be able to access a multi-entry five-year visa, provided they meet specific requirements. Applicants will also be able to renew it once, meaning the maximum length of a visit can be up to ten years. Immigration minister Erica Stanford said a longer-term visa was an important consideration for migrants when deciding where they want to build their lives. "The Parent Boost Visa strikes the balance of making New Zealand more attractive for people who want to make our beautiful country their home, without putting additional strain on public services," she said. To be eligible for a Parent Boost visa, applicants must: They must also meet income requirements, either through their sponsor or through their own ongoing income, as well as having cash of up to $250,000 for a couple or $160,000 for a single parent. "The Parent Boost Visa strikes the balance of making New Zealand more attractive for people who want to make our beautiful country their home, without putting additional strain on public services," Stanford said. "We are committed to delivering an efficient and predictable immigration system that drives economic growth to take New Zealand forward." ACT's immigration spokesperson Parmjeet Parmar said she was proud to see the commitment fulfilled. "Ultimately, this visa makes New Zealand a more attractive destination for the talent we need to drive economic growth. A skilled workforce means more productivity, stronger communities, and more prosperity for all New Zealanders." ACT's own proposal for the visa would have introduced an annual fee to fund healthcare costs. The government policy requires comprehensive health insurance instead. In October 2022, then Immigration Minister Michael Wood announced the new parent visa to help clear a backlog of more than 8500 parents waiting to permanently join their adult children in New Zealand. About 12,000 parents were waiting in June last year, but only 500 had been picked to apply in the year before that. In February Immigration New Zealand announced a one-time increase in the parent visa quota , which had an annual cap of 2500, with 2000 visas allocated to queue-based applications and 500 to ballot-based applicants. But Stanford authorised an extra 331 queue-based visas to combat the backlog which had caused lengthy delays for families. Some parents had reportedly died while waiting . The new Parent Boost applications open on 29 September. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
