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Labour Government MP Georgina Beyer said today the living standards of hundreds of thousands of New Zealanders will improve as a result of government initiatives coming into force within the next fortnight.
"Two out of three families with dependent children will be eligible for targeted tax relief, adults with student loans will have a greater disposable income, and the income of retired New Zealanders will increase.
"In addition, businesses will notice the biggest cuts to business taxes since the late 1980s.
"The measures taking effect from April 1 will give greater security to families, young and old," said Ms Beyer.
"A significant extension to Working For Families will see an additional 85,000 families become eligible for targeted tax relief, through the Inland Revenue Department.
"The total number of families entitled to tax relief will increase to 350,000, or approximately two-thirds of all families with dependent children.
"Targeted tax relief is the best option for supporting working families and will make a big difference by providing support when families need it most - when they are raising children.
"Also from April 1, there will be relief for families and individuals paying off student loans.
"There are an estimated 420,000 people with student loans resident in New Zealand. Stopping all future interest charges will both encourage people to stay in New Zealand and contribute to our economy and society, and give them more opportunity to get ahead by reducing the burden of their loans.
"A further 490,000 New Zealanders will notice a change in their disposable income after April 1, when those receiving New Zealand Superannuation and the Veterans Pension will receive their annual increase, of between $380 and $640 per year.
"This extra income will ensure living standards are maintained and offer greater security for senior citizens.
"The business community will also notice changes after April 1. Fringe benefit tax and depreciation rules have been changed and the tax costs associated with international recruitment are being reduced.
"The tax changes are equivalent to a 2 percent cut in the corporate tax rate. They are designed to help raise productivity, reduce compliance costs, make it easier to recruit highly skilled people from overseas, and support the transition to a knowledge-based economy."
Ms Beyer said there is still more work to do this year.
"Further work is under way on the structure of new tertiary education initiatives, further relief to low income families through the rates rebate, more affordable primary health care through the rollout of PHOs, an extension of paid parental leave, and greater help with childcare costs.
"We are passionate about New Zealand and its potential and will do whatever we can to see this country succeed," Ms Beyer said.
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