Superannuitants benefit by $20 from Nats' tax package

National Party Leader Don Brash says superannuitant households will be $20 a week better off as a result of the National Party’s tax policy.

“Our tax cuts will benefit not just workers but retired New Zealanders as well,” he told superannuitants on the Kapiti Coast today.

“Adjustments to superannuation as a result of the tax cuts, and the National Party’s promise to abolish the carbon charge, will leave an average superannuitant household better off by more than $20 a week during the next term of government.

“They will benefit because the net superannuation payment is related to the after-tax average wage, and when we reduce tax on the average wage the benefits will flow into superannuation.

“But National is going one step further. Under the normal process of adjusting Super, the effects of the tax cuts would be delayed a year, but I am determined that retired New Zealanders get an immediate benefit from this package.

“We will provide for a one-off adjustment to the notional tax rate on the December 2005 average wage, so the impact of lower taxes will apply to superannuitants from April next year. After that the normal adjustment criteria will apply.”

National expects the annual net payment for a married couple on New Zealand Super will rise by about $320 from April next year, rising by inflation to around $410 from April 2007, and then a further lagged increase from the tax cuts to around $560 from April 2008.

“Superannuitants will also benefit from our intention to scrap the carbon tax, which independent analysts have stated will cost an average household over $500 a year, or $10 a week,” Dr Brash said.

“As a consequence, the average superannuitant household will be $20 a week better off, and that should be the benchmark which superannuitants use to assess any last-minute bribes from a desperate Labour Party.

“However, the most important commitment I make to you today is that the National Party’s tax policy will give older New Zealanders the real prospect that their children and grandchildren will be able to make their futures in this country.

“Right now, the incentives for younger New Zealanders who want to get ahead are all in favour of moving to Australia. That is what too many New Zealanders are forced to do.

“The tax package I have announced is designed to let New Zealanders keep a fair share of what they earn, and provides real incentive to work harder and smarter, and reduce our company tax levels to the same 30% level as Australia,” says Dr Brash

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