By now, the vast majority of New Zealanders would be receiving the benefit of tax cuts that became effective on October 1.
The tax cuts will help families pay the bills, save more and get ahead.
Now, a family on the average household income of $76,000 gets a weekly tax cut of about $46. They will pay extra GST of only about $21, which leaves them about $25 a week better off.
Superannuitants have had a double boost. They have received a rise in New Zealand Super to compensate for the increase in GST and cuts in personal tax, which apply to New Zealand Super payments and to any other income such as interest, dividends or part-time work.
National wants to build a stronger economy and these tax cuts will help tilt our economy towards saving, investment and exports.
They are not just about giving people more money. They are also about providing the right incentives.
National’s tax cuts will encourage people to get more skills and seek better-paying jobs, and they will help attract and retain skilled people in New Zealand.
We are also working on initiatives like the Primary Growth Partnership (PGP) to help build a stronger economy.
PGP was introduced last year to transform great ideas into research, development and ultimately products, jobs, and growth.
In the past year, the Government-Industry Partnership has seen primary sector innovation receive its biggest funding injection in decades. So far, the Government has committed $164 million of the $368 million spent by the Partnership.
Five partnerships have been announced to date, covering our dairy, sheep and beef, wool, forestry, and arable sectors. Every New Zealander stands to gain from the significant economic spinoffs.
PGP and the tax changes are an important part of National’s comprehensive six-point plan to lift the long-term performance of the economy.
Only a growing economy can create sustainable jobs, provide the world-class health and education services that families need, and deliver the higher incomes that all New Zealanders deserve.
