From Monday, the cost of living will be eased for many New Zealanders as July 1 changes kick in, says Prime Minister Christopher Luxon.

“Abolishing the Auckland regional fuel tax will make motorists 11.5 cents per litre better off, and in difficult financial times, that is a big saving,” says Luxon.

“We are determined to reduce the cost of living pressures for hardworking New Zealanders and this, as well as other July 1 changes, will go some way to easing that pressure on them.

"Despite abolishing the Auckland regional fuel tax, this government is delivering a record investment in transport, including in Auckland."

Fixing and preventing potholes is also being addressed. Photo: SunLive.

Luxon says nearly $4 billion has been set aside to fix and prevent potholes on the state highway and local road network over the next three years.

"Including $478 million set aside for local road pothole prevention in Auckland, a 74 per cent increase over the previous three-year period," says Luxon.

“And funding for public transport services nationally is also set to rise by 41 per cent compared to the previous three years.”

FamilyBoost reimbursement and paid parental leave

The new FamilyBoost reimbursement also comes in on Monday, July 1.

“This will be a big help for families with young children, who can claim back up to 25 per cent of their early childhood education fees, to a maximum fortnightly amount of $150," says Luxon.

Paid parental leave also increases from tomorrow – with the maximum weekly rate increasing from $712.17 to $754.87.

“This will help families get the support they need in the early and most important stages of a child’s life.

“The sorry state of the economy that my government inherited is a well told story, however I have always been clear that the savings that are required to get our country back on track will not be at the expense of those Kiwis doing it tough."

The new FamilyBoost reimbursement also comes in on Monday, July 1. Photo: SunLive.

Luxon says getting back to fiscal health will be a long journey and the economic situation is challenging "but there are signs of light on the horizon".

“Treasury’s Budget forecasts show an improving outlook, with inflation coming under control, interest rates dropping and growth recovering."

He says inflation is tracking in the right direction with food prices experiencing the smallest increase since September 2018.

“We will continue to rebuild the economy so that workers, businesses and families can get ahead once more.

“Tomorrow’s cost of living measures are helping New Zealanders through difficult times,” says Luxon.