1 Jul 2013

Petrol tax increase likely to push up prices

10:27 am on 1 July 2013

It will cost more to fill up the car from Monday due to the latest petrol tax increase of 3 cents a litre.

Z Energy senior communciations adviser Sheena Thomas says the profit margins on a litre of petrol are too lean to absorb the tax increase, and their customers can expect to pay 3 cents more a litre.

The Automobile Association's petrol watch spokesperson, Mark Stockdale, says rising oil prices and the falling exchange rate mean other fuel companies are also likely to pass on the cost.

The tax increase is one of a number of changes coming into effect on Monday, which include an increase in paid parental leave payments.

Those eligible for the paid parental scheme are entitled to up to 14 weeks' paid leave after having a baby, at a rate calculated on the basis of their average weekly earnings.

The maximum payment will increase from $475.16 to $488.17 gross a week.

Labour Minister Simon Bridges says the payments are adjusted every year to account for any increase in average weekly earnings and will give families a little extra.

In another change, New Zealanders returning home from working in Australia are now able to bring their superannuation entitlements with them.

New portability arrangements mean funds will be able to be transferred between some Australian superannuation and KiwiSaver schemes.