Ross Jami-Lee: Taxation (Annual Rates for 2015-16 Research and Development and Remedial Matters) Bill — First ReadingText is incorporated into the Bound VolumeRoss Jami-Lee: Taxation (Annual Rates for 2015-16 Research and Development and Remedial Matters) Bill — First Reading[Sitting date: 11 March 2015. Volume:703;Page:2157. Text is incorporated into the Bound Volume.]JAMI-LEE ROSS (National—Botany): I was enjoying speaking the last time the House was considering this bill—last night as it happens. I was enjoying the opportunity to speak on this bill because I was happy to outline for the members opposite how this Government is working hard to ensure that research and development investment in our country is encouraged. Research and development investment in our country is being encouraged by this Government through a number of measures most important of which is the over half a billion dollars of research and development grants over the next 4 years that we are putting into our economy to assist organisations and assist businesses to invest in research and development. This bill follows on from that.If I can just point out to the House again this bill has two very important measures regarding research and development encouragement. There are the research and development effectively cash-out tax credits that this bill covers and also the ability for businesses through the changes that we are making around what you would call black hole research and development expenditure to benefit from that. We went over the detail on that last night. I will not talk much further about it but those are important parts of this bill.I also want to touch on the more general aspects around tax and this Government’s ability to say that we have created a fairer tax system for New Zealanders. The fairer tax system that we have in this country which is backed up again by this bill through the annual rates of taxation that this bill outlines is seen in the fact that two-thirds of the value of the 2010 income tax cuts went into reducing the bottom two tax rates. Those who need assistance in life the most and those who are struggling to make ends meet do benefit more from the tax changes that were made in 2010 than many others.Households earning less than $60000 a year are generally expected to pay proportionally less net income tax today than 5 years ago. When you take into account the income support payments that households are receiving households earning less than $60000 a year are expected to pay no net income tax at all. The $2.7 billion of income tax they pay this year will be offset by $8.1 billion in income support that those households receive. Whenever members in this House say that we are not doing enough to assist those who are on the lower income thresholds I can point to the fact that our tax system highlighted and boosted by this bill is fairer and is supporting those people.Finally I want to just touch on the child support reforms this bill talks about. The child support reforms are talked about by the Labour Party when it is complaining about the changes being made by the Inland Revenue Department and its computer system. The reason why the computer system is being changed with the Inland Revenue Department is that we have not actually made substantive changes to child support payments and the system in place there since 1991. I know members opposite sometimes struggle to understand the need for these changes but when a system has not been amended or changed since 1991 naturally there are going to be technological changes that need to follow through with it. Yes there have been difficulties with that system. Yes there have been changes that the Inland Revenue Department has needed to make but as we heard in the Finance and Expenditure Committee today the Minister of Revenue has worked hard to try to get those costs down and find savings. This bill backs up some good stuff the Government is doing. I support it.