3. Support for Families—Tax Redistribution and Other SupportDr SHANE RETI (National—Whangarei) to the Minister of FinanceSupport for Families—Tax Redistribution and Other Support3. Dr SHANE RETI (National—Whangarei) to the Minister of Finance: How is redistribution through the income tax and income support systems helping support New Zealand families?Hon STEVEN JOYCE (Acting Minister of Finance): Tax and income support is a significant source of income redistribution in the economy more so following tax changes made in 2010. Treasury has updated its estimates for tax collection for the 2016-17 year. It now expects households earning over $140000—that is the top 20 percent of household incomes—will pay 55 percent of all income tax. The top 10 percent of households are expected to pay 37.2 percent of income tax this year which is up from 35.5 percent when this Government took office in 2008. Families in lower-income households are paying a smaller proportion of tax. The 20 percent of households with the lowest income are expected to pay just 2.8 percent of income tax this year compared with 3.4 percent in 2008.Dr Shane Reti: What other evidence has he seen showing the tax and income support systems are more progressive today than in 2008?Hon STEVEN JOYCE: Treasury has also undertaken an analysis of the net tax paid by households—that is income tax paid less than the amount received in benefits superannuation and Working for Families. This shows the 30 percent of households with the lowest incomes will pay $1.7 billion of income tax but this is more than offset by the $10.6 billion they are expected to receive in income support. Treasury estimates that 42 percent of households will pay no net income tax—that is they will pay less in tax than they receive in welfare benefits Working for Families New Zealand superannuation or accommodation subsidies. This compares with 39 percent in 2007-08 when this Government took office. That suggests tax and income support systems are more progressive today than they were in 2008.David Seymour: Has the Minister seen any reports of the National Party campaigning to make the tax and transfer system—Mr SPEAKER: Order! No that question is not in order. There is no ministerial responsibility at all for a political party.Dr Shane Reti: What steps has the Government taken to help New Zealand families get ahead?Hon STEVEN JOYCE: The economy remains front and centre of the Government's busy programme which of course includes the Business Growth Agenda which is helping to create more jobs and higher incomes for New Zealanders. We are seeing results. New Zealand currently has the second-highest employment rate in the developed world—that is the second-highest. Of every 100 people aged 16 and over 66 are in work. That compares with 61 in Australia and Canada 60 in the UK and the US and 56 across the OECD as a whole. This is in part due to the 250000 jobs that have been added to the economy over the last 3 years.Dr Shane Reti: What steps has the Government taken to support lower-income families?Hon STEVEN JOYCE: On 1 April this year the Government increased benefits for families with children by $25 a week. It is the first real increase since 1972. We also increased Working for Families payments to very low-income working families by $24.50 a week and to other working families by up to $12.50 a week and we increased childcare assistance for low-income working families. On top of this the Government has introduced free GP visits and prescriptions for under-13s breakfasts in all schools that want it social workers in all low-decile primary schools the Youth Service for young teen beneficiaries insulation in every State house that can be insulated rheumatic fever prevention Whānau Ora and now the establishment of a new ministry to support vulnerable children.Grant Robertson: Which of the following achievements of his Government is helping to support New Zealand families the most: homelessness being the worst in living memory according to the Salvation Army; 10 percent of New Zealanders owning 60 percent of the wealth according to Statistics New Zealand up from 55 percent; or his own admission that incomes are dropping despite GDP growth?Hon STEVEN JOYCE: I would contest at least two of the member's statements there if not all three. But in terms of the things this Government is most proud of it is creating the climate the job opportunities and investment in job growth throughout New Zealand that is lifting employment—something like 325000 jobs now since the global financial crisis—which is bringing Kiwis into work which is raising their wages ahead of inflation which means that more and more New Zealanders want to return home from other parts of the world where they fled during the previous Government.Grant Robertson: In light of his answers to the primary and first supplementary questions expressing confidence in the progressivity of the tax system is he ruling out tax cuts being proposed by his Government before the next election?Hon STEVEN JOYCE: No I am not ruling anything out today but I can tell the member that if the Government was in a position to improve the position of income taxes for New Zealanders we would be looking to do it for all hard-working New Zealanders.