Raising NZ incomes a key feature of Budget
Two billion dollars will go back into the pockets of New Zealand families, with the Government unveiling a combination of tax cuts, a boost to the accommodation supplement and Working for Families in yesterday’s Budget.
Some families could be in line for an extra $150 per week pumped into their household income. Across the 1.3 million families the package would reach, however, the average lift to income would be $26 per week.
The biggest boost would go to people living in higher housing cost areas (for which the boundaries have been redrawn) and receiving the accommodation supplement.
Finance Minister Steven Joyce unveiled his maiden Budget in Parliament, with a muchanticipated Family Incomes Package as the centrepiece. He said it was ‘‘carefully designed to especially assist low and middle income earners with young families and higher housing costs’’.
The Government intends to raise the bottom two tax thresholds, boosting the incomes of about 1.3 million families. The $14,000 income tax threshold will rise to $22,000 and the $48,000 will be lifted to $52,000.
‘‘The measures in this Budget are expected to lift 20,000 households above the threshold for severe housing stress, and reduce the number of children living in families receiving less than half of the median income by around 50,000,’’ Joyce said.
THE BUDGET GLANCE:
The Economy $373m to diversify and support more jobs and higher wages
$134m for new and better trade opportunities
$61m towards a new $102m tourism infrastructure fund for regional NZ
$81m for programmes
$222m over four years for International Screen Production Grant
$93m for developing Maori tourism, housing and social initiatives Public Services
$3.9b for District Health Boards predator AT A control and other services
$1.1b for schools, early childhood centres and operational funding
$424m investment in new Vulnerable Children ministry
$1.2b for 10 per cent increase in police numbers and justice sector $194m for social development $185m for more emergency housing and Corrections pathway Social Investment
$116m in mental initiatives $73m for children most at-risk $79m for reducing reoffending and improving long term outcomes
$54m addressing barriers to employment and independence Infrastructure
$812m to reinstate the earthquake-damaged SH1 from Picton to Christchurch
$548m investment in national rail network
$436m for Auckland City Rail Link
$392m for new schools and classrooms $576m investment in Defence $763m in additional prison capacity
$150m for District Health Boards’ capital
Other initiatives $11.4m for Radio NZ to invest in new technology
$4.8m for the operation of Pukeahu National War Memorial Park
$3.4m to complete works for the Pitt Island Wharf programme
$9.6m for New Zealand’s continued presence in Antarctica health