New Zealanders and their families deserve the opportunity to get ahead in this country.

National is helping Kiwis achieve this through the most thorough and beneficial overhaul of tax rates in nearly 25 years.

Our Budget 2010 tax package helps tilt the economy in favour of productive investment, savings, and exports, and away from consumption, borrowing, and unsustainable Government spending.

That is essential to create the jobs, the higher incomes, and the opportunities for Kiwi families to do well in New Zealand.

Furthermore, the tax package rewards effort, helps attract and retain skilled people in New Zealand, and makes the tax system fairer.

Across-the-board personal income tax cuts more than offset the rise in GST. This is fair and leaves the vast majority of New Zealanders better off.

A typical person on the average wage of about $50,000 a year will get a tax cut of about $29 and pay about $14 more a week in GST. They will be about $15 a week, or $800 a year, better off.

A typical family on the average household income of $76,000 a year will get a tax cut of about $46 a week and pay about $21 more in GST. They will be about $25 a week, or $1300 a year, better off.

The Government believes those changes will help individuals and families save more, pay off debt, and get ahead.

You can calculate your tax cut, the extra GST you will pay, and any compensation you will receive through increased Working for Families, NZ Super or benefits at www.taxguide.govt.nz.

Some say that forecast inflation means families won’t be as well off after the tax changes. But that’s not the case. Forecast inflation will be more than offset by forecast wage rises.

The vast majority of New Zealanders will be better off as a result of the tax changes.

But the tax package isn't just about what people get in their pocket.

It's about improving the incentives for people to get ahead, to save, to invest in productive businesses, and to do so in New Zealand.

Only through lifting the long-term performance of our economy can we create jobs, boost incomes, raise living standards, and provide world-class public services for you and your family.

This entry was posted by admin on Friday, June 11. 2010 at 18:54. and is filed under News.