Copeland: UF helps people into their first homes

United Future has secured New Zealanders the right to withdraw funds from the new workplace savings scheme for a deposit on a first home and gained them $5000 individual and $10,000 couple government grants for the same goal, United Future finance spokesman Gordon Copeland confirmed today.

“We specifically moved these changes from the original Government plan for what is a very good scheme,” Mr Copeland said.

“We have been pushing for this sort of change for some considerable time.

“And we’ve also ensured that earnings on this scheme and other superannuation funds will be taxed at the marginal rate of the member. This is fundamentally important. Previously earnings were taxed at a flat rate of 33 cents but for some 74% of all taxpayers their marginal tax rate is no more than 21 cents.

“Obviously when the savings of these people are taxed at a rate which is 12 cents higher than what they are paying on all their other income, the current system contains a major disincentive,” he said.

“These factors, together with the flexibility of the scheme in relation to mortgage payments, gives me confidence that it will gain the support of most working New Zealanders and make an important contribution to household and national savings.”

ENDS

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