Donald Rod: Taxation (Annual Rates GST Trans-Tasman Imputation and Miscellaneous Provisions) Bill — Instruction to CommitteeCWH In Committee 
Donald Rod: Taxation (Annual Rates GST Trans-Tasman Imputation and Miscellaneous Provisions) Bill — Instruction to CommitteeCWH In Committee 
[Volume:613;Page:10089] 
ROD DONALD (Co-Leader—Green) 
: 
 It is not often that I agree with Dr Lockwood Smith but on this occasion I entirely concur with his point of view that the Government should have included in the title of this bill the section on specified superannuation contribution withholding tax. That is one part of this bill for which I believe there is universal support around this Chamber. It is a part that I would have thought the Government would be making a big deal about. The Government is finally doing the right thing for those New Zealand workers earning less than $38000 a year who are trying to save for their retirement through a subsidised employer superannuation scheme. The title should have reflected that by including before “Miscellaneous” the phrase: “SSCWT: Removal of Tax Penalties”. That would have encapsulated what this bill is going to achieve. 
This Government is making a very important step forward by removing those tax penalties and it is a step we support but we would have much preferred the title to include “SSCWT: Extending the Superannuation Withholding Tax Concession to All Workers”. Unfortunately this Government has signalled that it wants to preserve a 6 percent concession or tax break for those workers earning more than $60000 a year and receiving an employer subsidy. It wants to preserve that concession for wealthy wage and salary earners but not extend that same 6 percent concession to heartland Labour Party voters who are the very workers in this country who need an incentive to save for their retirement. It is disappointing that the Government is not prepared to contemplate it would seem amendments along those lines. I am however looking for support from all the other parties in the Chamber and if those parties that support family-friendly policies can see their way to supporting my amendments we will have the majority. Then the title of the bill could be changed to refer to extending superannuation withholding tax concessions to all workers. 
Another change to the title we would like to see would be to incorporate the words “Tax Relief for Struggling Kiwi Families” after the words “Annual Rates”. That is something I think every member of this Committee would surely support including the Minister in charge of the bill Hon Dr Michael Cullen who I am pleased to see is just joining us. To that end I will be moving an amendment at the appropriate time to make the first $5000 of income tax-free. That would have across-the-board benefits for all New Zealanders but proportionately greater benefits for people struggling at the bottom. Whether they are beneficiaries or workers that would put more money in their pockets and therefore it would be important to add that to the title after the words “Annual Rates”. 
Straight after that it would also have been ideal if this bill had incorporated in the title “Carbon Taxes and Other Eco-taxes” because that is the Green strategy to pay for the tax cuts we want to offer New Zealanders across the board. Unfortunately again the Minister has signalled that carbon taxes are still way off in 2007 and other eco-taxes are not quite yet a twinkle in his eye but we will continue to encourage the Minister in that regard. But in the meantime I think this bill would have been more rounded if the Government—indeed the Minister—had taken credit for the excellent initiative on removing the tax penalties from the specified superannuation contribution withholding tax. In an ideal world he would have gone further and extended that as a tax concession as well as bringing in tax relief and eco-taxes. 
Clause 1 agreed to.