7. GEORGINA BEYER (Labour) Link to this
to the Minister for Social Development and Employment
What reports, if any, has he received on support for the Working for Families package?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
I have seen a number of reports that endorse the Government’s policy of targeting tax credits where they are needed—to hard-working Kiwi families with children. One example was in a speech given on Sunday, which was an endorsement of “allowing for family size in the tax structure” and “easing the financial pressure on families generally.” That speech was given by Don Brash, so in the words of the Dominion Post, it is “back to the drawing board” for National on tax policy.
Hon DAVID BENSON-POPE Link to this
I have seen a number of letters to the Prime Minister in response to the package. One of them states: “In our household the extra $132 that is received each week has eased the financial pressure substantially. Now I shop knowing there is room in the budget to buy a reasonable amount of groceries that will see us through the full week. The extra money means that I can put some money towards paying off old debt. It means I can enrol my son in swimming lessons and sports activities. Working for Families is, for my family, huge.”
Craig FossHow can the Working for Families package, which sends a message to Kiwis of “This is as good as it gets, and don’t even bother trying to improve yourself because the Labour Government will tax you at 90 percent.”, do anything at all to lift the living standards for New Zealanders to the levels enjoyed by the thousands of New Zealanders currently living in Australia?
Hon DAVID BENSON-POPE Link to this
Well, I would have thought that a package that has already benefited 194,000 families in terms of family assistance, 286,500 recipients of accommodation supplements, and 31,600 recipients of childcare assistance is actually making some very substantial gains for those families.
Hon Dr Michael Cullen Link to this
Can the Minister confirm that Australia uses a targeted tax credit mechanism, which is also bled out with high effective marginal tax rates, and, like many countries, does not have a universal tax allowance for children?
Hon DAVID BENSON-POPE Link to this
Yes, I can confirm that the system the Working for Families package is based on is very similar to that in the UK and Australia.