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Labour Irons Out Low Income Tax Issue

23 August 2014

Labour Irons Out Low Income Tax Issue

The increasing casualisation of work has led to many New Zealand families being disadvantaged through the tax they pay, Labour Leader David Cunliffe says.

"Many low paid workers are having to work two or three jobs to make ends meet and support their families.

"The current secondary tax regime makes life even more difficult for them and is an additional obstacle to meeting the basic costs of living.

"Labour will address this hardship by making sure that these workers, rather than paying the full secondary tax and having to claim back due refunds later, have access to the money they earn when they need it – in their wage packets.

“We will prioritise the development of an alternative to secondary tax. In the interim, the use of special tax codes will be facilitated.

"Labour has already promised to raise the minimum wage to $16.25 in its first year in office and its commitment to making the tax system fairer for the low paid is another step towards addressing poverty and inequality in New Zealand.

"Along with Best Start, KiwiBuild, and our work - related policies, we will bring opportunities to all New Zealanders in their jobs, their homes and their families.

"This commitment to addressing secondary tax system is another step along the path to making New Zealand, under a Labour-led government, the fairest, most decent society in the world,” David Cunliffe said.


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