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


Government confirms less cash for 1.2m Kiwis

14 December 2017

Government confirms less cash for 1.2m Kiwis

The Coalition Government’s legislation today to remove the tax threshold changes from Budget 2017 will mean less money for 1.2 million working Kiwis, National Party Finance Spokesperson Steven Joyce says.

“This bill means hard-working Kiwis on the average wage will no longer receive the $1060 extra money they were due to receive from 1 April next year,” Mr Joyce says.

“It is very strange for a Government that says it wants to increase the wages of hard-working Kiwis to start by taking more than a $1000 a year off them.

Mr Joyce says the savings the Government has made by cancelling the tax changes have all gone into providing a year’s free tertiary education, which will not be targeted to those most in need.

“It is wrong to take $1060 off average wage earners to give a year free tertiary education to lawyers and accountants.”

Mr Joyce says the decision means a majority of full-time Kiwi workers will face a marginal tax rate of at least 30 cents in the dollar for every additional dollar earned.

“This is a very high rate, especially when you add in GST and the abatement rates for programmes like Working for Families and the Accommodation Supplement.

“Kiwi families quickly get into the situation of paying more than half of any extra income they get in tax.

Mr Joyce says the package as a whole is overly complicated and poorly designed.

“National’s Family Incomes package was structured to lift 50,000 children out of poverty from April 1 next year. Labour’s 88,000 is not until 2021 by which time National would have undertaken its second similar package with a similar impact.

“Labour could have achieved the same result with a much simpler package that retains the tax cuts and provides better rewards for hard work.

“This bill complicates an already far too complicated tax and benefit system.

“Kiwis already get confused about what they are entitled to. This package makes it worse.

“We need to strengthen the link between work and income so that people know they get more when they work extra hours or change for a higher-paying job.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Now-Former Cyclone: States of Emergency Declared

A state of emergency has been declared in Buller, Greymouth and Christchurch, with fears some homes are at a high risk of flooding over the next day.

High tides overnight were likely to bring large waves to Kaikōura and Christchurch about 9pm, and to Taranaki, Kāpiti and Nelson about 2am.

The latest severe weather update has upgraded watches for heavy rain in Christchurch, Banks Peninsula and North Otago to full warnings...More>>


Kauri Protection: Waitākere Forest Closure Proposed

At the 20 February meeting of the Environment and Community Committee, the council proposed to close the forested areas of the Waitākere Ranges Regional Park, with some exceptions, by 1 May 2018. More>>


'Hit And Run' Raid: NZDF Had Reports Of Civilian Casualties

The NZDF received intelligence updates within one or two days of the August 2010 SAS raid in Afghanistan that reported civilian casualties, including the death of a child, new OIA documents reveal... it appears they did not bother to investigate nor made any effort to help the victims. More>>


Christchurch Public Meeting: Complete U-Turn By Labour And NZ First On TPP

The TPP might have been re-branded as the CPTPP but it's still the same bad deal says Professor Jane Kelsey, New Zealand's expert on international economic regulation. More>>


Commerce, Etc: Thicker Bright Line For Real Estate

Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years in legislation currently making its way through Parliament.More>>


Prison Inspections: Reports on Manawatu and Paremoremo Released

The Office of the Inspectorate today released reports into Manawatu Prison and Auckland Prison (Paremoremo), the first two resulting from a programme of inspections of New Zealand prisons. More>>

Whistle Blowers: Government To Review Law On Protection

Work has begun on a review of the Protected Disclosures Act 2000, Minister of State Services Chris Hipkins said today. More>>





Featured InfoPages