12. RUSSELL FAIRBROTHER (Labour) Link to this
to the Minister for Social Development and Employment
Has he received any reports on proposed changes to Working for Families tax credits?
Hon DAVID BENSON-POPE (Minister for Social Development and Employment) Link to this
I have seen a surprising report in today’s Christchurch Press, which proposes that the Working for Families tax credits, which currently go to middle and low income families, should be redistributed to the wealthy. Under the proposed roll-back an estimated 160,000 families would lose about $50 per week, and an estimated 60,000 families would lose tax credits. For a Kiwi family with three kids and a mortgage, and earning around $52,000 a year and currently receiving $246 per week under the Working for Families package, the proposals would see that family lose some $80 per week. That proposal, of course, comes from the leader of the National Party, John Key, whose main interest appears to be putting as much money as he can into the pockets of his wealthy mates.
Russell Fairbrother Link to this
What would be the effect of taking tax credits away from middle and low income families?
Hon DAVID BENSON-POPE Link to this
I can advise the member that Working for Families tax credits have, among other things, lifted an estimated 70,000 children over the income poverty threshold. New Zealand is expected to move from 18th place on the Unicef Innocenti report card into the top half, and possibly into the top quartile in terms of the reduction in child poverty. The effect of Mr Key’s proposals announced today would be to reverse that trend. I seek the leave of the House to table a document entitled It Works Just Fine, which refers to the effect of the Working for Families package.
Madam SPEAKER