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Boost for lower-income working families welcomed

The Salvation Army Media Release

Boost for lower-income working families welcomed

Wellington 22 May 2008 - The Salvation Army is welcoming the Budget tax cut for lower-income working families, but is concerned there may not be enough assistance for beneficiary families who are unable to enter the workforce.

Salvation Army Social Policy and Parliamentary Unit Director Major Campbell Roberts says that it is pleasing to see tax cuts, which were targeted particularly at lower-income families.

'Lower income working families will really benefit from the changes to tax thresholds such as the new lower 12.5 per cent rate for income up to $14,000 as well as increases to Working for Families. This is good news.'

Other initiatives such as boosted social housing, increased funding for community groups, and increases for seniors and caregivers are also positive.

'It is pleasing that the Government has been able to fund these initiatives while at the same time protecting existing social investments.'

But Major Roberts says that one concern of The Salvation Army is that the Budget does not extend assistance to beneficiary families.

'The Government report "Pockets of Significant Hardship and Poverty" reveals significant pockets of poverty in New Zealand, particularly in areas such as south and west Auckland.

'These families are struggling with rising food, petrol and other costs, but they will not see any relief from this Budget.'

ENDS

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