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


Superannuitants benefit by $20 from Nats' tax pack

Superannuitants benefit by $20 from Nats' tax package

National Party Leader Don Brash says superannuitant households will be $20 a week better off as a result of the National Party’s tax policy.

“Our tax cuts will benefit not just workers but retired New Zealanders as well,” he told superannuitants on the Kapiti Coast today.

“Adjustments to superannuation as a result of the tax cuts, and the National Party’s promise to abolish the carbon charge, will leave an average superannuitant household better off by more than $20 a week during the next term of government.

“They will benefit because the net superannuation payment is related to the after-tax average wage, and when we reduce tax on the average wage the benefits will flow into superannuation.

“But National is going one step further. Under the normal process of adjusting Super, the effects of the tax cuts would be delayed a year, but I am determined that retired New Zealanders get an immediate benefit from this package.

“We will provide for a one-off adjustment to the notional tax rate on the December 2005 average wage, so the impact of lower taxes will apply to superannuitants from April next year. After that the normal adjustment criteria will apply.”

National expects the annual net payment for a married couple on New Zealand Super will rise by about $320 from April next year, rising by inflation to around $410 from April 2007, and then a further lagged increase from the tax cuts to around $560 from April 2008.

“Superannuitants will also benefit from our intention to scrap the carbon tax, which independent analysts have stated will cost an average household over $500 a year, or $10 a week,” Dr Brash said.

“As a consequence, the average superannuitant household will be $20 a week better off, and that should be the benchmark which superannuitants use to assess any last-minute bribes from a desperate Labour Party.

“However, the most important commitment I make to you today is that the National Party’s tax policy will give older New Zealanders the real prospect that their children and grandchildren will be able to make their futures in this country.

“Right now, the incentives for younger New Zealanders who want to get ahead are all in favour of moving to Australia. That is what too many New Zealanders are forced to do.

“The tax package I have announced is designed to let New Zealanders keep a fair share of what they earn, and provides real incentive to work harder and smarter, and reduce our company tax levels to the same 30% level as Australia,” says Dr Brash


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election