Your back pocket
The backbone of National’s tax policy is putting more money in the pockets of middle- income New Zealanders who can do with it what they will.
Under a National- led government, people earning a salary of $ 52,000 or more would be richer to the tune of $ 1000 a year. People earning between $ 22,000 and $ 48,000 a year would be about $ 560 better off while people earning $ 15,000 or less would receive little to no benefit from tax cuts.
National is also looking at a second round of cuts in years two and three of its tenure. It will also increase the $ 14,000 income tax threshold to $ 22,000 and the $ 48,000 tax threshold to $ 52,000, meaning a tax reduction of $ 10.77 a week for anyone earning more than $ 22,000 a year, increasing to $ 20.38 a week for anyone earning more than $ 52,000.
However, the party will scrap the Independent Earners Tax Credit, which currently entitles people earning between $ 24,000 and $ 44,000 to an extra $ 10 a week.
National says these people will still be better off though as a result of its other tax policies. It will increase Working for Families tax credits, but not to the same extent as Labour. The party says it will raise the age of super to 67 after 2037.
Labour has ruled out tax cuts and would introduce taxes on commercial water use, a tourist tax and an Auckland regional fuel tax of up to 10c a litre.
It will significantly boost the money available to households earning under $ 57,000 a year through its Working for Families policy. For example, single- child families making $ 30,000 would get an extra $ 20, rising to $ 47 a week if they have two children or $ 74 with three children.
This compares with National’s $ 9.25 a week for single- children families, $ 36.06 for t wo children and $ 62.87 for three. But it’s with middleincome earners where Labour’s Working for Families policy most significantly diverges from National’s: A $ 55,000- a- year household with one