2. SHANE JONES (Labour) Link to this
to the Minister of Finance
What reports, if any, has he received on the success of the Government’s Working for Families tax credit programme?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
This programme has been very successful, with the estimated total number of eligible families at around 360,000 in the 2006-07 tax year. In particular, it is delivering very substantial reductions in the proportion of children living in poverty.
Hon Dr MICHAEL CULLEN Link to this
The Ministry of Social Development estimates that full implementation, with the $10 per week per child increase on 1 April this year and the family support tax credit, will lead to a reduction in child poverty of up to 70 percent, which will put us in the top five countries in the OECD in that respect. I have also seen the promise of Mr Key in the last election to cancel that $10 per week per child increase—enough to pay for a basic breakfast for a child—in order to fund tax cuts for the better-off.