Budget 2026 allocates funding and measures in response to the global fuel crisis, with Finance Minister Nicola Willis outlining support for working families and frontline services.
The In-Work Tax Credit will increase by $50 a week for up to one year to help working families with increased fuel costs. The Government is also providing additional funding for Fire and Emergency, Corrections, Police, Customs and Education to maintain frontline operations in the face of sustained fuel price increases.
The Budget allocates $150 million for additional strategic fuel reserves. Mileage rates for support workers and people travelling for specialist treatment have been temporarily increased, and support has been provided for public transport authorities to manage fuel cost pressures.
A $450 million reserve has been set aside for additional temporary targeted support if conditions worsen. The situation in the Middle East remains uncertain, creating ongoing risk for fuel prices.
Willis said "since the outset of the conflict, our approach has been to stay ahead of risks to New Zealand's fuel supply, keep the economy moving, and support those most affected by higher fuel prices with temporary, targeted and timely measures".
She added "the Middle East conflict underscores the need for fiscal discipline. Our ability to withstand global shocks depends on the strength of our financial buffers".