19 May 2005
Budget covers the main bases - CTU
“This is a Budget which covers all the main bases” CTU president Ross Wilson said today. “But there are some disappointments as well, and include the adequacy of age care funding.”
“It continues a strong spending path on health and education, permanently addresses the bracket creep problem on income tax, introduces an innovative workplace savings scheme, signals some assistance for first home buyers and helps lift the rate of business investment by accelerating depreciation.”
“Unions will welcome the changes in income tax, but the main income issue for workers is the need for higher wages.” Ross Wilson said.
“And, inevitably, the tax changes tend to benefit those on higher incomes. They will get $10 a week extra income whereas the average worker will get $4 a week” he said.
“The KiwiSave scheme is a major innovation. The $1000 lump sum payment will be a real incentive to get into the scheme and the fee subsidy will also assist. The extra payment of $5000 for those in the scheme who buy their first home is also good news for low income workers trying to get together a deposit on their first home.”
“In general terms funding increases in the Budget appear substantial, but there remains a question over their adequacy in some areas once inflation and demographic adjustments across the four years are taken account of.”