4. Question No. 4—RevenueHon Dr DEBORAH RUSSELL (Labour) to the Minister of RevenueQuestion No. 4—Revenue4. Hon Dr DEBORAH RUSSELL (Labour) to the Minister of Revenue: Is he confident that all wage and salary earners will receive the full tax benefits as outlined in Budget 2024 and the Tax at a Glance leaflet on their first pay day on or after 31 July 2024; if not why not?Hon SIMON WATTS (Minister of Revenue): Yes. Inland Revenue is working at pace with payroll providers to ensure that every wage and salary earner will get their well-earned tax relief as promised. After 14 years Kiwis have waited long enough to get their much-awaited tax relief.Hon Dr Deborah Russell: Why did the Minister elect not to carry the personal income tax threshold changes through to PIE investor rates or employer superannuation contribution tax (ESCT) rates until 1 April 2025 even though personal income tax thresholds are changing on 31 July 2024?Hon SIMON WATTS: The two examples provided by that member were highlighted as part of the Budget documents released and it is correct that the employer superannuation contribution tax will come into effect on 1 April 2025. But the reality is that 3.5 million New Zealanders are going to benefit from personal income tax relief on 31 July and that side of the House voted against it.Hon Dr Deborah Russell: Is the Minister aware that not changing the PIE investor rates or the employer superannuation contribution tax rates until 1 April 2025 means that low-income earners investing in KiwiSaver will be overtaxed by an average of $70 each between 31 July 2024 and 31 March 2025?Hon SIMON WATTS: Well I've answered that in my prior question. I said that we are aware of that and that those changes and fixes in regards to the ESCT will come into effect. The amount quoted around $70.80 is correct but we've signalled that as part of the Budget process. But again I remind the member: her party voted against the policies that we are implementing to deliver taxpayers in this country tax relief from 30 July.Hon Chris Bishop: Is it the case that the House may have seen an incredibly rare occurrence a Labour MP arguing for tax relief?SPEAKER: No that's not a question. Things like that are not at all helpful.Hon Dr Deborah Russell: Is the Minister aware that this over-taxation will lead to KiwiSaver balances being reduced by—[Interruption]SPEAKER: Sorry hang on.Hon Dr Deborah Russell: —700—SPEAKER: Hold on. Start again while the House is listening.Hon Dr Deborah Russell: Thank you Mr Speaker. Is the Minister aware that this over-taxation of low-income earners will lead to KiwiSaver fund balances being reduced by $700 million by 2070?Hon SIMON WATTS: Well firstly I don't agree with the premise of the question because I stated already that the Budget included the assumption that these fixes would come into play from 1 April 2025. So it's not over-taxation. But what is over-taxation is that side of the House not supporting the tax cuts that this Government has outlined where 3.5 million New Zealanders will benefit by an average of $32 a fortnight. But I'm proud to be part of a Government that has delivered upon our promises.Hon Dr Deborah Russell: Is the Minister comfortable with the over-taxation of low-income New Zealanders when it helps the Minister of Finance to balance her Budget?Hon SIMON WATTS: I mean this is a little bit tiresome but I will reinforce the point that on this side of the House we believe that hard-working Kiwis deserve to keep more of what they earn. What is clear on that side of the House is that they do not believe in that premise. I tell you what: New Zealanders are pretty smart: they will follow the aspect that makes sense for them.Rt Hon Winston Peters: Could I ask the Minister—SPEAKER: Just wait till the House is prepared to listen.Rt Hon Winston Peters: Oh they will be. Would it have been easier to handle this matter of tax cuts had the Government not had to wrestle with the squanderous $25 billion excess spending of the last three years?SPEAKER: No that's another one of those questions that's kind of interesting but—Rt Hon Winston Peters: And it's true.SPEAKER: Well that will be the member's assertion and if that's the case the whole House knows it. So we don't need to hear it again.