5. RUSSELL FAIRBROTHER (Labour) Link to this
to the Minister for Social Development and Employment
What has been the impact on households of Working for Families tax credits?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
The impact has been very considerable indeed. From 1 April 2007 an estimated three out of every four New Zealand families with dependent children will be entitled to further tax credits through Working for Families. Also, from 1 April Working for Families tax credits will increase by a further $10 per child per week, which, depending on family circumstances, is an increase of between 12 and 21 percent. That also means that from 1 April a family with two children on the average family income will be, in total, $136 per week better off than previously. Under National’s proposed tax cuts for the wealthy, the same single-income family would be, in comparison, $91 per week worse off from 1 April onwards.
Russell Fairbrother Link to this
What is the total increase to Working for Families tax credits as at 1 April this year?
Hon DAVID BENSON-POPE Link to this
I can advise the House that the 1 April increases to the Working for Families tax credits will distribute a further $366 million to Kiwi families with children. I note that National’s policy, announced today, is a proposal to divert between $60 million and $90 million from tax revenue as a tax break for donations. That idea seems to be based on taking money from lower-income families and giving it to wealthy families so they can donate it to lower-income families.
Russell Fairbrother Link to this
What further reports has the Minister received on the effects of the Working for Families package?
Hon DAVID BENSON-POPE Link to this
I am pleased to read an excerpt from a letter to the Dominion Post from Judith Baxter of Khandallah, which reads in part: “The scheme”—Working for Families—“recognises and encourages women in their mothering role and, by offering financial support, gives women more choice when deciding how many hours of paid work they need to supplement the family income or to advance a career. The power to choose takes the pressure off mums who have felt they must work, reduces the need for expensive childcare and can only benefit the family, as it is intended to do.” I seek leave to table a number of letters to the editor around the success of the Working for Families package.
Madam SPEAKER