3. Economy—Tax Cuts Trans-Tasman Migration and WagesHon AMY ADAMS (National—Selwyn) to the Minister of FinanceEconomy—Tax Cuts Trans-Tasman Migration and Wages3. Hon AMY ADAMS (National—Selwyn) to the Minister of Finance: What is the current difference in average full-time after-tax wages between New Zealand and Australia?Hon GRANT ROBERTSON (Minister of Finance): According to advice that I have received the current full-time after-tax annual wage in Australia converted to New Zealand dollars is $70478 compared with $50957 in New Zealand a difference of $19521.Hon Amy Adams: Is this after-tax wage gap going to get larger or smaller as a result of his decision to take away a thousand dollars per year of tax reductions from New Zealanders on the average wage and Australia's decision last night to give workers a $500-a-year tax cut?Hon GRANT ROBERTSON: The details of the Australian tax package are to roll out over a number of years so the impact will vary both in terms of time and on individuals. Clearly this Government rejected the previous Government's tax package so therefore there will be an impact in terms of the after-tax annual average wage but I hasten to add for the member that for many families and individuals in New Zealand they will be significantly better off as a result of our targeted Families Package.Hon Amy Adams: Given that since the end of 2008 take-home pay in New Zealand has grown twice as fast as in Australia is he worried that all the work that has gone into making New Zealand more attractive than our neighbours for skilled workers is going to be eroded over the coming years?Hon GRANT ROBERTSON: Far from it because in New Zealand today the tax as a portion of gross income will be 18.9 percent and after the changes made last night by the Australian Government it'll be 22 percent. So actually in New Zealand the impact of tax is in fact smaller in New Zealand on gross income.Hon Amy Adams: Is he at all concerned that New Zealanders will simply vote with their feet and that having turned around the exodus of New Zealanders heading to Australia from 35000 a year in 2008 to actually now a small gain the outward migration to Australia will now increase as a result of their growing after-tax wage advantage?Hon GRANT ROBERTSON: No I do not believe that will occur because this Government has a plan to grow sustainable jobs and lift wages. Unlike the National Party Opposition we actually believe that the reward for workers is higher wages. That is actually how people get rewarded rather than tax cuts.Hon Amy Adams: Why would skilled young New Zealanders choose to stay here if the after-tax wage gap starts to grow and they face a Government in New Zealand that's actively slowing down the local economy by ending our oil and gas sector large-scale cow culls discouraging foreign investment and restrictive industrial relations laws?Hon GRANT ROBERTSON: I reject almost everything in that question from the member. We actually have a plan for New Zealand's economy to be more productive more sustainable and more inclusive. I think New Zealanders want to live in a country that's fair and where they get a chance to achieve their potential—that's the plan of this Government.