08 August 2006

Report proves worth of Working for Families

Income statistics in the Social Report 2006 show the Government was right to introduce targeted tax relief through Working for Families, Social Development Minister David Benson-Pope said after the report's launch this morning.

Mr Benson-Pope said that the statistics, sourced from the 2004 Household Economic Survey, show that income inequality increased between 2001 and 2004, before Working for Families was implemented. While incomes rose across the board during that time, the highest incomes increased at a greater rate than others.

"The HES findings show that Working for Families' targeted tax relief for low and middle income families, rather than tax cuts for the wealthy, is entirely appropriate. It was clear at election time that the majority of New Zealanders agreed", he said.

"This financial year, 360,000 low and middle income Kiwi families will be entitled to tax relief through Working for Families. Eightyfive percent of the spend is going to families in the lower half of the income range, and 40% to families in the bottom fifth", Mr Benson-Pope said.

Released by the Ministry of Social Development, the Social Report shows improvements in almost every area of social wellbeing over the past decade, including income, employment, health, and life expectancy.

"Overall, this year's Social Report is proof that New Zealand has recovered from the dark days of the mid-1990s, when unemployment skyrocketed and families were reeling from the effects of Ruthanasia", Mr Benson-Pope said. " More of us are working. Fewer of us are smoking. We're living longer, getting more qualifications, and earning more.

"Over the next year, as Working for Families takes full effect, the news will get even better."

ENDS

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