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


Working For Families A Pathway To Debt

John Key National Party Finance Spokesman

8 February 2005

Working For Families a pathway to debt

National's Finance spokesman, John Key, says hundreds of thousands of families could find themselves in debt because of Labour's badly designed Working For Families package.

"The Working For Families scheme relies on people correctly assessing their total household income, and if they underestimate their projected income they will be required to repay any overpaid entitlement to the Inland Revenue Department.

"In a similar scheme in Australia, only 4% of recipients calculated their income accurately in the scheme's first year, leaving a huge number with a debt averaging $850.

"In the Australian scheme's first two years, 1.3 million families owed the Government more than $1 billion, and the Government was forced to write it off.

"The other problem for New Zealand families is that if they choose to get their benefit in a lump-sum, they will have to wait 12 months and could well end up with big credit card debts for an entitlement that may never be paid."

Mr Key says the simplicity of taxing New Zealanders less and leaving them with the cash they have earned has some clear advantages over such a complicated scheme as Working For Families.

"This is the second major design fault of Working for Families. The scheme also exposes Kiwi families to tax rates of up to 90c in the dollar."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news