1. Question No. 1—FinanceSAM UFFINDELL (National—Tauranga) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. SAM UFFINDELL (National—Tauranga) to the Minister of Finance: What recent announcements has she made about personal income tax?Hon NICOLA WILLIS (Minister of Finance): In the Budget I announced an adjustment to personal income tax thresholds. Thresholds will rise from $14000 to $15600 from $48000 to $53500 and from $70000 to $78100. The effect of these increases is to reduce a person's income tax by up to $40 a fortnight. The changes will apply from 31 July. They are the first positive changes to personal income rates or thresholds for 14 long years.Sam Uffindell: What other tax relief was announced in the Budget?Hon NICOLA WILLIS: From 31 July the in-work tax credit which helps support low to middle income working families with children will increase by $50 a fortnight. Depending on their family size and income working families will therefore get up to $50 a fortnight extra. Eligibility for the independent earner tax credit has also been extended from $48000 a year to $70000 a year of income. This credit is for people who do not get a benefit or Working for Families—the squeezed middle if you will. Extending the credit will help an estimated 420000 additional people most of whom will get the full $20 a fortnight. This of course is on top of the new FamilyBoost childcare payment I announced in March that will give parents and caregivers up to 25 percent back in their early childhood education fees to a maximum of $150 a fortnight. We on this side of the House are proud to have given tax relief to hard-working New Zealanders. Members opposite voted against it.Sam Uffindell: How much will people receive in tax relief?Hon NICOLA WILLIS: The Budget material contains various scenarios. For example a couple earning an average household income of $125000 will benefit by up to $102 a fortnight. People's individual and family circumstances differ widely however which is why there is a tax calculator on the Budget website which I'm advised more than 400000 New Zealanders have visited. Treasury modelling shows that an estimated 727000 households will benefit by at least $75 a fortnight; 187000 will benefit by at least $100 a fortnight. On average households with children will benefit by $78 a fortnight. I've occasionally heard people say that tax relief only benefits the well-off. Well they are misinformed. Our changes to the in-work tax credit and introduction of FamilyBoost tilt the benefits of the tax package to low to middle income working families with children.Sam Uffindell: How is this tax relief funded?Hon NICOLA WILLIS: Well tax relief in this Budget puts $3.7 billion a year back into the pockets of New Zealanders. As the Budget documents clearly show this tax relief is fully funded by $3.7 billion of offsetting savings and revenue measures. This funding is broadly as set out in the National Party's fiscal plan with a handful of changes to reflect coalition commitments. As it is fully funded there is no borrowing for tax relief. We have made the savings so New Zealanders can have more in their bank accounts.