Parata Hekia: Questions for Oral Answer — Questions to Ministers 
Parata Hekia: Questions for Oral Answer — Questions to Ministers 
[Volume:667;Page:14192] 
1. 
HEKIA PARATA (National) 
 to the  
Minister of Finance 
: How much demand has there been for the tax calculator taxguide.govt.nz and what are some of the benefits it confirms from the tax changes on 1 October? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 I am pleased to confirm that the website taxguide.govt.nz has been popular since the Budget and demand is increasing. As of this morning the calculator has received almost half a million page views. Clearly New Zealanders are keen to see the effect of the Government’s tax package for themselves. The website confirms that the GST income tax switch on 1 October will leave the average family about $25 a week better off the average worker about $15 a week better off and a couple on New Zealand superannuation about $11 a week better off. It is no wonder the tax guide is popular and I hope more New Zealanders will follow the example of the Opposition and spend a good deal of time looking at it. 
Hekia Parata 
: How will the Government’s tax package leave an average household better off? 
Hon BILL ENGLISH 
: If we take the case of a couple in their early 40s who jointly earn an average household income of $76000 a year—one working full-time earning $50000 and the other part-time earning $26000—have two children receive Working for Families and pay $300 a week in mortgage repayments under the tax changes that household gets a tax cut of $45.85 a week and pays an extra $21.14 in GST. So overall that household is $24.71 a week ahead or nearly $1284.92 a year better off. 
Hon David Cunliffe 
: Does the calculator confirm the analysis by the New Zealand Institute of Economic Research that half of all households will be worse off as their tax cut is wiped out by rising food prices GST and other one-off charges? 
Hon BILL ENGLISH 
: No it does not confirm that. What it confirms is that comparing the GST increase with the tax cuts the vast majority of New Zealanders will be better off. As I pointed out to the member yesterday real after-tax incomes will in fact rise between October and December by 1.2 percent according to Treasury. 
Hekia Parata 
: How will the Government’s tax package leave an average wage-worker better off? 
Hon BILL ENGLISH 
: If we take the example of a plumber earning $50000 a year—the average full-time wage—paying $120 in rent and saving $50 a week under tax changes that person receives a tax cut of $29.42 a week and pays $13.51 more in GST. So overall they are $15.91 a week or $827.32 a year better off. But I remind the House that these tax cuts are not just about the hip pocket they are about the vital need to rebalance our economy away from consumption and borrowing and towards investment exporting and saving. 
Hon David Cunliffe 
: How will the 160000 people currently unemployed be better off when the consensus is that unemployment will remain at high levels for the next 2 years while food prices rents—and I do not know where he found a figure of $120 for rent because it certainly was not in Auckland—and power prices continue to rise? 
Hon BILL ENGLISH 
: All those people who are on a benefit will be compensated on 1 October and the longer-term benefit is simply that if we continue on an economic track where all growth is funded by borrowing and people spend too much then none of those people without jobs will get proper jobs. With the kind of rebalancing assisted by this package they have the hope of getting a real and sustainable job. 
Hekia Parata 
: How will the Government’s tax package leave a couple receiving New Zealand superannuation better off? 
Hon BILL ENGLISH 
: Let us take the example of a married couple who are retired and receiving New Zealand superannuation with no investments but who own their own home which is fairly typical. Under the tax changes they get a tax cut of $11.52 a week plus a $10.12 increase in their New Zealand superannuation payments because of the impact on tax cuts on the average wage and they will pay an extra $10.87 a week in GST. Overall the retired couple will be $10.77 a week better off or $560 per year better off.