6. CHARLES CHAUVEL (Labour) Link to this
to the Minister for Social Development and Employment
What reports has he received on the uptake of Working for Families tax relief?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
In the month of June 2006, 70,500 more families were receiving Working for Families tax relief through the Inland Revenue Department than a year before. In the month of June alone, the Government paid out $140 million in Working for Families targeted tax relief to hard-working New Zealand families raising children. I am pleased to confirm to members of the House that the Working for Families tax relief package is tracking according to forecast.
What reports has the Minister received about public understanding of targeted tax relief for working families?
Hon DAVID BENSON-POPE Link to this
The impressive uptake in Working for Families targeted tax relief this year does indicate a high level of public awareness. But I have seen a report in the Dominion Post, dated 27 July, which demonstrates that Dr the Hon Lockwood Smith PhD does not realise that Working for Families tax relief was first implemented in the 2005-06 tax year, is very confused at the difference between the 2004-05 and the 2005-06 tax years, and does not realise that Working for Families tax relief is a progressive tax system that proportionately targets lower and middle income earners compared to higher income earners.
John KeyIs the Minister aware that his own ministerial staff have been directly contacting businesses and asking them to make presentations on Working for Families on the cafeteria floor because they are deeply concerned about the appropriate take-up rate, and is that further evidence that his $15 million advertising campaign is not working; in which case, will he commit today to saving the taxpayer a bit of money by canning the balance of the programme?
Madam SPEAKER
Brian ConnellI raise a point of order, Madam Speaker. Just to protect myself, I point out to you that neither Phil Connolly or Brian Connell said anything in that last exchange.
Hon DAVID BENSON-POPE Link to this
Yes, I am aware that staff are making approaches in workplaces to employers and to unions to ensure, as this Government has requested, that people do have access to the entitlements they should be picking up.
I can confirm the widespread support for this proposal in the House by reading the following quote to the member: “I don’t think of Working for Families as a welfare programme. Many people in employment also receive money from Working for Families. So we have clearly said that certainly what’s been rolled out so far will be continued, and we’re likely to roll out much of the rest of the programme as well.”, which was, of course, said by former Governor of the Reserve Bank, and current National Party leader, Don Brash.
Sue BradfordHas the Government made progress in reducing the number of people who are required to pay back tax relief at the end of the financial year because of changing circumstances and their difficulties in assessing income; and what steps is the Government taking to cut further the numbers of those forced to pay money back?
Hon DAVID BENSON-POPE Link to this
The normal process, as the member understands only too well, is at the end of the year to carry out the wash-up of people’s tax expectations. That process will continue as it has in the past.