Call to Enquire

09 306 5820

2017 Budget
The Budget.jpg

Given New Zealand’s current surplus, the National government has recently proposed a budget ahead of our election that focuses on benefiting families and New Zealand’s infrastructure. In this budget, National is proposing raising the lower two tax thresholds from $14,000 to $22,000 and $48,000 to $52,000 meaning more money in the pocket for everyday New Zealanders. Specifically, those who earn between $22,000 and $52,000 per year will see an extra $11 per week, and everyone on an income over $52,000 will see an extra $20 per week as a result of these threshold movements alone. Further, National are proposing an increase to Working for Families tax credits, accommodation supplements and an increase to NZ Superannuation payments. National has also proposed resuming payments to the NZ Super Fund in 2020-21 which is positive for the long term outlook of the fund and the country’s ability to maintain the current pension system.

 

National has also proposed allocating $32.5 billion dollars to infrastructure spending of which $2.7 billion is to be spent on housing. This $32.5 billion represents a $4 billion dollar increase from the previous spend, and is driven by the need for our infrastructure, particularly in transport, to keep up with New Zealand’s economic and population growth. This budget mainly affects the lower to middle income earner but does still benefit most New Zealanders. There is still plenty of time before the election for more policy however, so we may see further developments in budgetary policies from both National and Labour.

 

This budget could be seen as a move from National in Labour voter territory. Labour is looking to do more than National in the area of Working for Families, the details of which are to be released. Comments from Little however are that Labour does not support changing the tax thresholds in such a way. Further, Labour’s Grant Robertson comments the National budget does not address housing, health and education enough. This could suggest Labour would look to prioritise spending in those areas as opposed to having that level of tax cuts. Regardless, with the Greens coming out in support of moving the tax thresholds, it seems both National and Labour are going to let Kiwis have more in their pockets – whether that comes primarily through tax cuts or handouts remains to be seen.   

James McKelvie |  Paraplanner  

james@wealthworks.co.nz 


 
© 2008 Wealth Works Ltd  www.wealthworks.co.nz
Website Design by Labyrinth Solutions  |  Content Management by Contegro