Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Life's tougher by $30 pw for average Kiwi Family

Life's tougher by at least $30 a week for average Kiwi family

Hard-working New Zealand families will have to get some relief in next week's Budget after a very tough start to the year, according to figures released today by Opposition Finance spokesperson Bill English said today.

"The average New Zealand household is worse off by $1500 a year, or $28.24 a week thanks to higher mortgage rates, higher petrol costs and more expensive cigarettes.

"That's an extra bill of just on $30 a week, which is a big hurdle to face when you're on an after-tax household income of about $750 a week, which is the average.

"Working families facing these costs will be looking for the Budget to help them make ends meet. Since 1996 they've been used to Budgets putting more money in their pockets, through tax cuts and credits and programmes such as family support. This time around they are expecting a lot from a Government that has raised expectations.

"But this Budget looks like containing nothing for ordinary, working families. The millions that Dr Cullen will dish out will be great for his special causes, but do nothing for ordinary families.

"The extra $30 a week is just our initial cut of the effect of economic decisions and trends on household budgets.

"The tariff freeze will add even more to family's costs. For years now households have become accustomed to cheaper goods including clothes and shoes - but the tariff cuts have been stopped midstream. They will be paying about $11a week more in bills than they would have if the tariff cuts had gone ahead.

"Added together these extra costs will be piling $2077 a year, or just on $40 a week, onto the bills faced by ordinary households.

"New Zealand was perfectly positioned to make a strong start to the new millennium. In six short months, the Government has turned that around and ordinary New Zealanders are paying," Mr English said.

Ends Inquiries: John Goulter 025 232 4303

The Average Working Household

The average household income (before tax) is $49,225 per annum, or $944 per week. After tax roughly $750 per week. Since the start of the year, the average household has had to contend with:

$ Impact on average household budget Total per annum impact on average household budget 12 cent increase in petrol prices (January price of premium 96.9 cents - $108.9 cents today) $514 more per annum Increased interest costs $900 per annum on $60,000 mortgage $1 increase in price of pack of cigarette $86 per annum $1500 per annum $28.85 per week Tariff Freeze $11 per week - $572 per annum $2072 per annum $39.85 per week 5.3% of the average net household budget *The average household is based on the Household Economic Survey 1997/98 - average number of occupants 2.71 and average income of $944 gross/week. *The tariff freeze. The NZIER has calculated that if the full phase out of tariffs had occurred, households would have benefited by $42 per week or over $2000 per annum. Freezing the tariff reductions midstream will freeze the benefits to households at $31 per week, costing households $11 per week or $572 per annum. *As well as these numbers that have been easy to quantify, there are a whole raft of other pressures out there. In particular, the weakness in the New Zealand dollar is adding to pressure for prices rises for imported goods, including overseas holidays, union membership fees (est. at $10 a week or $520 a year).

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Dealing Crackdown, Addiction Support: Government Action On Synthetics

The NZ Drug Foundation has welcomed the Government’s response to synthetic drug deaths. The response strikes a balance between giving law enforcement the tools they need to target criminal networks and changing drug law to make it easier for people to access help when they need it. More>>

ALSO:

Strategy Committee Unanimous: Wellington To Forge Ahead With Convention Centre

The three-storey Cable Street building, with around 18,000-square metres of floor space, will comfortably be able to host 1500 people for conventions. It includes a 1651sq m exhibition area that will attract international exhibitions too big for nearby Te Papa and provide an always-changing visitor attraction. More>>

ALSO:

Surveying The Surveillance: First IGIS Review Of Warrants Under New Act

The report sets out the Inspector-General’s interpretation of the new warrant provisions under the ISA and her expectations of the GCSB and NZSIS when they prepare warrant applications. More>>

SSC: 2018 Public Service Workforce Data Published

State Services Commissioner Peter Hughes has published the 2018 Our People, Public Service Workforce Data , which shows the Public Service is making significant progress in important areas. More>>

ALSO:

Sinking Cap: Auctions, Permanent Forests, Added To ETS

The move to auctions, signalled in an August consultation paper, will help put a cap on the number of emission units available over time. Annual announcements, looking forward five years, will help provide certainty for scheme participants, she said. More>>

ALSO:

Joint Select Committee Report: Achieving Smokefree 2025

In a historic first for select committees, the Māori Affairs Committee and the Health Committee presented their joint report on achieving the Smokefree 2025 goal to the House on Tuesday, 11 December 2018. More>>

"Shared Interests And Democratic Values": Peters To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. for talks with US Secretary of State Michael R. Pompeo and other senior members of the US Administration. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels