‘ Modest’ boost for families in Budget
and
The Government has unveiled a familyfriendly Budget, returning the books to black and making a pitch to middle New Zealand.
With the general election just months away, Finance Minister Bill English announced a $ 372 million surplus and slightly loosened his iron grip on the Government’s purse strings.
He said he hoped to keep interest rates lower for longer but an analysis of Budget documents suggests tax cuts are unlikely until 2018- 19.
Prime Minister John Key hinted yesterday National might go into the election campaign with some tax- relief promises.
Moves likely to be popular with the voting public are a gradual extension of paid parental leave to 18 weeks and an easing of criteria.
The $ 172m package, over four years, will extend eligibility to caregivers, and those who recently changed jobs or are in lessregular work.
There is also a lift in the parental tax credit to $ 220 a week, plus an increase in entitlement to 10 weeks, from April 2015.
However, it will be means- tested and a couple having their second child will not receive any payments if they together earn more than $ 99,847.
Free doctors’ visits and prescriptions will be extended to under 13s from July next year.
Almost $ 156m will go to early childhood education centres to keep them ‘‘ accessible and affordable’’.
ACC levies on private vehicles are likely to drop by $ 130 a year.
Households can look forward to a little extra at the end of the month with Treasury predicting the average wage will rise by $ 7600 to $ 62,300 by 2018.
‘‘ This package is clearly focused on young families and those vulnerable children who most need our care and protection,’’ English said.
A $ 33m plan also aims to bring down high levels of child abuse and neglect.
The Government has moved to tackle a housing affordability crisis by freezing taxes on imported building products, reducing the average cost of building a Returning the books to black, with $ 372 million surplus Extension of paid parental leave to 18 weeks, from April 2016 An increase in the parental tax credit to $ 220 a week, plus an increase in entitlement to 10 weeks, from April 2015 The average annual wage is expected to rise by $ 7600 to $ 62,300 by 2018 Reduced ACC levies, including a likely $ 130 a year drop on private cars from July 2015 $ 90m for extending free GP visits and prescriptions to under 13s, from July 2015 Interest- free loan of $ 375m to the New Zealand Transport Agency for Auckland transport
Duties on imported building products suspended, to drop the cost of building a house by $ 3500 $ 858m of new money for education and $ 199m investment in tertiary education $ 1.8 billion extra over four years to meet health cost pressures and fund initiatives $ 33m to identify and support ‘‘ vulnerable children’’ $ 100m to get more people off benefits and into work Cheque duty to be abolished in July, costing about $ 15.5m over four years $ 40m for new irrigation projects $ 20m to improve water quality and $ 26.5m to protect kauri from dieback disease house by $ 3500.
There is also more money ($ 1.8b) and education ($ 858m).
Auckland transport projects will get a $ 375m leg- up, with an interest- free loan. However, the police budget remains frozen, at $ 1.5b.
Cantabrians are likely to be disappointed, with new announcements on the rebuild just rats- and- mice spending. The Government’s total contribution to the rebuild is $ 15.4b, of which $ 7.3b will be incurred by the Earthquake Commission.
After two years of ‘‘ zero budgets’’, the Government will stick to its $ 1b operating allowance – increasing to $ 1.5b next year, and then by 2 per cent.
English said the ‘‘ moderate’’ lift would keep interest rates ‘‘ lower for longer’’.
No tax cuts are likely until 2018- 19, with a focus on reducing debt from the present 26 per cent of GDP to 20 per cent.
Money banked from the sale of stateowned energy companies – known as the Future Investment Fund – is dwindling, with just $ 1.7b left in the $ 4.7b pot.
English was cautious, warning that some factors driving the so- called ‘‘ rockstar’’ economy will peak in the next few years.
Export prices were expected to return to normal, housing supply would catch up
for
health and the Christchurch rebuild eventually slow, he warned.
The economy was also tied formance of trading partners Australia.
English said the Government wanted to focus on long- term ‘‘ fundamentals’’ rather than a ‘‘ shorter period of unsustainable growth’’.
He denied National was targeting the centre vote with this Budget, and stressed the Government’s family packages differed from Labour’s because they were ‘‘ modest’’ and ‘‘ sustainable’’.
In his response, Labour leader David Cunliffe said the Budget was a ‘‘ fudge- it Budget’’.
‘‘ This House has no confidence in a government that has failed to put people first,’’ he said, adding the Government had ‘‘ no vision’’.
‘‘ This budget should be about those we are here to serve – the people of New Zealand,’’ he said.
‘‘ I’ve got a few numbers for you – $ 56b, that’s how much debt has piled up under National.
‘‘ Numbers like $ 1.2b, that’s the level debt . . . $ 10m a day, that’s the interest we’re paying on National’s debt – think of how many kids could be lifted out of poverty for that.’’
would to the China perand