Watts Simon; Kuriger BarbaraSecond ReadingHon SIMON WATTS (Minister of Revenue) on behalf of the Minister of Finance: I move That the Taxation (Budget Measures) Bill be now read a second time.The high cost of living is one of the most pressing issues here in New Zealand today and that is why we are considering this bill under urgency. Given that urgency I will provide just a brief recap of the content of this bill and the purpose for the second reading.It will be obvious that the purpose of this bill is to provide responsible tax relief squarely at lower to middle income Kiwis. This will be done by increasing the bottom three personal income tax thresholds which will allow people to keep more of what they currently earn before moving to higher income tax levels.The bill will also extend the independent earner tax credit to compensate for wage growth and help more people with the cost of living. It will also boost the in-work tax credit so that low to middle income working families will get up to an extra $50 per fortnight.These changes are necessary because many families are struggling with the high costs of housing food and also childcare. That's why this bill will also legislate the previously announced FamilyBoost which will help 100000 households with young children to be able to afford early childhood education and make that more easy for them. The cost of early childhood education fees can be a barrier to entering the workforce particularly for the second income-earner in the household. All families earning up to $180000 with early childhood education costs will be eligible. However to ensure support goes to families who need it most the maximum repayment will gradually reduce for families earning more than $140000.These changes are what we promised in response to the inflation impacts created by the last Government. But on the other side of the ledger inflation has also had another effect. Overseas-based student loan borrowers are currently charged interest at the rate of 3.3 percent on their student loans but over the last three years inflation has overtaken student loans' overseas interest rates by 9.5 percent. The bill therefore increases the interest rate charged on overseas-based borrowers of student loans by 1 percent for a period of five years from 1 April 2025. Increasing the current overseas interest rate formula by 1 percent for a limited time of five years will partially cover the loss of value in the scheme caused by the last three years of high inflation.One of the final items in the bill is an urgent remedial amendment to ensure that Inland Revenue can process claims for research and development tax incentive if a business applies for approval under an incorrect entity name.Overall the bill package will increase the income of most households in New Zealand. However a small number of households—less than 0.3 percent—will have their income reduced by $2 per fortnight on average. This is due to a quirk in the way in which the tax threshold adjustments interact with the calculation of tax for people who receive a benefit for only a part-year. After the personal income tax changes take effect these part-year benefit recipients will receive slightly smaller tax refunds at the end of the tax year.What the bill package will do is increase the income of 94 percent of households in this country by $60 per fortnight on average. Households with children will gain $78 per fortnight on average and that is a great result for hard-working families and households across this country. This Government has delivered on the promises that we committed to the New Zealand public. We have delivered income tax relief to hard-working New Zealanders and this bill is the proof in the pudding that we have delivered the actions that we promised to New Zealanders. We should be—and New Zealanders should be—proud of that achievement.This is the full extent of this Budget bill. It will make a real difference for New Zealanders up and down this country and I commend this bill to the House.DEPUTY SPEAKER: The question is that the motion be agreed to.