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I'm proud of the progress being made in New Zealand at the moment and want to take this opportunity to tell you about some of the new government initiatives of particular interest to older New Zealanders.
Rates Rebates
With rising property values, rates can be a burden on households with fixed incomes. So from July 1 of this year, we are increasing rates rebates and widening eligibility to them. We have increased:
the maximum annual rebate from $200 to $500,
the income threshold to qualify for a full rebate from $7,400 to $20,000,
the additional income allowance for dependants from $156 to $500 per dependant.
As a result, a couple living on NZ Superannuation ($25,276 a year) this year will be eligible for a rebate of $234 if the rates bill for their home is $1,500. A single superannuitant on an income of $16,645, with rates of $1,000 or more will be eligible for the full rebate of $500. The government's investment will assist up to 300,000 households a year, compared with the 4,000 who claimed a rebate in 2004/5. You can apply to your City or District Council for the rebate.
Age Based Driving Licences
I know that for those over the age of 80, the two-yearly on-road compulsory driving test can be a financial burden as well as being very stressful. Yet there is no evidence that it improves road safety. That is why we are abolishing these tests from 4 December this year.
Under the new system, drivers will just need a 'medical fitness to drive' certificate from their GP when they reach 75 years of age, again at 80, and every two years after that.
Asset Testing
Asset testing older people in long-term residential care was introduced by National back in 1993. Our Labour-led government doesn't believe it is fair.
From 1 July last year, the phase out of asset testing began. And from 1 July this year, single people and couples with both partners in care will be able to keep up to $160,000, including property and savings, before they are expected to use their assets to contribute to their care costs. When we came into government, the thresholds were just $15,000 for single people and $30,000 for couples. The exemption thresholds will keep increasing by $10,000 each year, progressively removing asset testing.
Health Care
The Budget provided for $126 million over the next four years for improving home-based support services and age-related residential care, helping more older New Zealanders remain in their homes for as long as they wish.
Superannuation
New Zealand Superannuation rates went up by 3.16% on 1 April 2006 ensuring it increased to not less than 66% of the net, average, ordinary time weekly wage for a married couple, as agreed with New Zealand First at the time our government was formed last October.
The Budget saw another $2 billion invested in the Superannuation Fund which is continuing to earn good returns. There is now over $10 billion in the fund, helping us guarantee the affordability of our pensions for the future.
Other issues
This year's Budget also provided funding to recruit 1000 extra frontline police and for the extensions to the Working for Families tax relief package. Around 350,000 New Zealand families now qualify for an average of $88 a week in tax relief. We are working hard to ensure that all families who qualify do get this relief, so I encourage you to check that all your family members with children have checked their eligibility.
Our Labour-led government is very committed to strengthening New Zealand families, young and old, so that all New Zealanders can maintain active, fulfilling lives and participate fully in our communities. We want all New Zealanders to have the support they need to be secure.
Please contact my office in Wellington if you would like any further information on any of these or other matters.
Yours sincerely,
Helen Clark
Prime Minister
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