This strategy means that the payment won’t change the Government’s fiscal trajectory, although, unfortunately for Willis, the declining economic conditions almost certainly will. As of Budget 2025, there was only $928m left in Willis’ 2026 allowance (the rest was pre-committed to health and defence). That’s why the Government, more than a decade ago, invented the Independent Earner Tax Credit, a $10-a-week boost to middle-income people who worked but did not get any other income support. The Government pointedly went against using the Family Tax Credit and the IETC to deliver income support. Labour’s press release, potentially fearful of talking too much about beneficiaries, mentioned only “those who aren’t eligible for the in-work tax credit”.

Source: New Zealand Herald March 24, 2026 06:07 UTC