Parental leave comes in as new financial year begins

This Saturday marks the beginning of a new financial year for the Government and the traditional starting date for many policies.

Some of the policies coming into force on July 1:

* Paid parental leave is extended to the self-employed. To be eligible parents must have been working an average of 10 hours a week or more during the period immediately before the birth or adoption of a child. The Government estimates more than 2000 self-employed parents will apply for it each year.

* Eligibility for the rates rebate scheme is extended in an attempt to assist those who rely on superannuation as their sole source of income. The rebates had become largely ignored because the income threshold had been fixed at $7400.

This rises to $20,000 a year with the additional income allowance for dependants also lifting from $156 to $500 per dependant. Fewer than 4000 people had been eligible for a rebate of up to $200. It is now estimated that up to 300,000 will qualify for a maximum rebate of $500.

* Money intended to subsidise visits to GPs for people aged 45 to 64 will begin to flow after doctors and the Government agreed on terms over fee reviews.

* Around 2000 superannuitants with a spouse or partner in long-term residential care will qualify for higher single, living alone rate of payment as opposed to half the married rate. This has reversed a discriminatory situation that had existed since 1993. That's $59 a week for a superannuitant living alone, or $39.36 per week for a superannuitant sharing with another person.

* Also from July 1 the removal of the "sharing expenses rule" takes effect. In the past, this rule has prevented some single superannuitants from getting the living alone payment if their families are helping to pay for some household expenses, such as rates.

* Subsidies for early childhood education providers will be increased, with rates for all-day teacher-led services increasing by up to 13.2 per cent, while rates for sessional teacher-led services will increase by up to 11.2 per cent.

* The end of the financial year will also mark the accumulation of one of the largest Government operating surpluses in history, though the exact size will not be known until the Treasury finalises the books later in the year.

- NZPA