Sio Aupito WilliamSecond ReadingHon AUPITO WILLIAM SIO (Minister for Courts) on behalf of the Minister of Revenue: I move That the Taxation (COVID-19 Support Payments and Working for Families Tax Credits) Bill be now read a first time.DEPUTY SPEAKER: Ah no—second time.Hon AUPITO WILLIAM SIO: Second time.This bill is about supporting New Zealanders through tough times. COVID-19 has been tough on all of us—[Interruption]—except for that lot. For low and middle income families who have to provide for children and for many sole parent families it can be tougher still which that lot doesn't seem to recognise. Reducing child poverty is a key priority for our Government and our aim to improve child wellbeing and lay the foundations for a better future. Increasing support for low and middle income families to help cover the basics is the fair thing to do and it is the reason why the House is considering this bill under urgency. The changes we are proposing contribute to the welfare overhaul work programme which lays the foundations to achieve the Government's vision of a welfare system that ensures people are treated with dignity and can live in dignity and that means that they have an adequate income and standard of living and can participate meaningfully in their communities. This bill will increase the family tax credit (FTC) rate by almost $15 per week for the eldest child in a family and by $13 per week for subsequent children from 1 April 2022. This family tax credit increase combines a $5 per week per child increase on top of the Consumers Price Index (CPI) increase for the family tax credit scheduled for 1 April 2022. The bill also makes two additional Working for Families increases on 1 April 2022 providing for a scheduled CPI index increase for Best Start from $60 to $65 per week from $3210 to $3388 per annum and an increase to the minimum family tax credit threshold from $31096 to $32864 per year. People currently receiving a family tax credit or Best Start payment will be better off with this change compared with what they receive now. The changes are targeted towards the lowest-income families so those with a family income of less than $40000 benefit the most with an average increase of $26 per week. We also want to ensure that we provide support to those that most need it; so the bill provides for an increase of the abatement rate for the family tax credit and in-work tax credit from 25 percent to 27 percent with the abatement rate being the rate at which these tax credits reduce once a family has income over $42700. This change means those on the lowest incomes will receive the most and no one will be worse off compared to what they receive now. In addition to the Working for Families tax credit increases the bill also makes a minor remedial amendment updating the CPI measure used for the indexation of FTC and Best Start tax credit rates. As a result of the Working for Families changes in the bill it's estimated that a further 6000 children will be lifted out of poverty. That's in addition to the up to 33000 children who will be lifted out of poverty by the increase in benefit levels earlier this year. These are solid gains for people in lower-income brackets. Turning now to business support the Resurgence Support Payment (RSP) scheme continues to provide financial support to businesses affected by the COVID-19 pandemic and helps to save jobs. It is a good scheme and one which has been a valuable aid to our economy. We want to ensure that we can continue to provide this support; so we need to adjust how the RSP scheme is activated. The legislation relating to the RSP scheme contains specific references to supporting eligible businesses if there is a resurgence in New Zealand of COVID-19 or an escalation in COVID-19 alert levels. The shift from the alert level framework to the COVID-19 Protection Framework as well as a shift of focus from elimination to an approach based on minimisation and protection means we need to amend the current legislative framework. The proposals in this bill are aimed at adapting the RSP's legislation into the more flexible COVID-19 support payments framework. The new framework will retain the overall objective of supporting eligible businesses affected by COVID-19 restrictions but will not be specifically linked to the alert level framework or limited to an escalation in COVID-19 alert levels. Instead the amendments will allow the Government to be responsive and provide support to businesses in a variety of scenarios. The amendments will allow Inland Revenue to make payments to eligible persons financially affected by a public health measure business circumstance or any matter related to COVID-19. The Governor-General will be able to authorise payment by Order in Council and just as with the existing RSP provisions the new COVID-19 support payments framework will provide that the activation criteria eligible persons circumstances of the payment and calculation of payment amounts may be set by Order in Council. This bill is about alleviating financial stress. It helps keep businesses afloat by ensuring that vital COVID support payments can continue to be made and it ensures that families are better off. It is a bill that recognises the reality of today's economic conditions and the role the Government plays in helping to relieve some of the financial stress. I want to thank the House for giving this bill its urgent attention and I commend the bill to the House. DEPUTY SPEAKER: The question is that the motion be agreed to.