Interim budget – families package

The Government released it’s interim budget today, which mostly confirmed what was already known, with a few numbers thrown in.

Budget update – fairness and prosperity

The Government is delivering on its commitment to manage New Zealand’s finances responsibly while ensuring the dividends of economic growth are more fairly shared.

We promised we would be a Government of change. The Government has made a clear choice to put the wellbeing of all New Zealanders firmly at the heart of what we do.

The Budget Policy Statement and our 100-Day Plan announcements are proof that this Government will be different, one that will lead the country in a new, positive and inclusive direction.

 

Budget update press releases:

Rt Hon Jacinda Ardern  – Prime Minister

The Government is delivering on its commitment to manage New Zealand’s finances responsibly while ensuring the dividends of economic growth are more fairly shared, says Prime Minister Jacinda Ardern.

“We promised we would be a Government of change. Together with our coalition partner, New Zealand First and our confidence and supply partner, the Green Party, we have made a clear choice to put the wellbeing of all New Zealanders firmly at the heart of what we do.

“Today’s Budget Policy Statement and our 100-Day Plan announcements are proof that the Government I lead will be different, one that will lead the country in a new, positive and inclusive direction.

“It will be a Government that makes reducing child poverty and inequality a priority. That is why we are moving with urgency to introduce legislation for the Families Package. This delivers on one of the key promises of our 100-Day Plan, alongside running balanced Budgets and paying down debt.

“We can pay for the Families Package and our fees-free policy for post-secondary education by cancelling National’s tax cuts.

“The Families Package will provide a significant boost to the incomes of low- and middle-income families. No family will be worse off than they are today, and most families with children will be better off.

When fully rolled out in 2020/21, 384,000 families with children will be better off by an average of $75 a week, with many lower-income families receiving more.

“We know working families struggle at times to provide the very best for their children. The early years of a child’s life are critically important to their long-term wellbeing and development.

“The Families Package is projected to lift 88,000 children out of poverty by 2020/21* – a 48 per cent reduction in the number of children living in poverty compared to the status quo. That’s 39,000 more children lifted out of poverty than under the previous National Government’s package.

“The Families Package includes a targeted boost to Working for Families, giving more money to low- and middle-income families with children, and increasing the number of families who will be eligible for support.

“The money saved from reversing National’s tax cuts also allows us to invest in Best Start as part of the Families Package. Every child deserves the best start in life; our policy will provide an income boost for all families with newborns.

“The Families Package includes the Winter Energy Payment, providing a welcome support to one million superannuitants and beneficiaries who face big heating bills in winter.

“This will provide long-term gains for the country and is fiscally responsible. We can do this while meeting all the targets we have set ourselves under the Budget Responsibility Rules, and without raising anyone’s personal income tax.

“The steps we are taking today show this Government’s determination to make a difference to the lives of many New Zealanders so more can share in the gains of economic growth. It’s about priorities and choices,” says Jacinda Ardern.

*   Defined as living in a household with an income less than 50 per cent of median equivalised household income before deducting housing costs

Hon Grant Robertson – Finance

“We can meet all of our commitments within our Budget Responsibility Rules. These commitments include our 100-Day Plan; Labour’s other policies in the pre-election Fiscal Plan; the Coalition Agreement between Labour and New Zealand First; and the Confidence and Supply Agreement between Labour and the Green Party.

“The Treasury’s Half Year Update incorporates the costs of our 100-Day Plan. The BPS indicates how policies outside this will be afforded within the capital and operating expenditures allowed in future Budgets. Over the next four years, allowances for policies outside of the 100-Day Plan provide $21.7 billion in new operating expenditure, and capital allowances provide for $12.6 billion of new investments.

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021.*

“Boosts to Working for Families, the introduction of Best Start and the Winter Energy Payment, reinstating the Independent Earner Tax Credit and continuing with the recent Accommodation Supplement changes will greatly help struggling families to access the basics which all New Zealanders should have.

“Within our 100-Day Plan we have kept our promise to begin fees-free post-secondary school education and training, kicked off the work on KiwiBuild, legislated for 26 weeks Paid Parental Leave and Healthy Homes, and much more.

“We will measure our progress as a Government differently – by focussing on improving wellbeing and lifting living standards. The first steps towards this are in our 100-Day Plan, with legislation to develop child poverty indicators that must be reported against at Budget time.

“Over the next four years, economic growth is set to remain strong, averaging 3 per cent. Unemployment is forecast to fall to the Government’s 4 per cent target, and wages are forecast to rise on average by more than 3 per cent annually.

“The Treasury forecasts we will keep government spending within its recent historical range, and that net core Crown debt will fall to 19.3 per cent of GDP within five years of us taking office – as promised.

Hon Carmel Sepuloni & Hon Tracey Martin – Social Development & Children

Hon Kelvin Davis – Crown/Māori Relations

Hon Auptio William Sio – Pacific Peoples

Hon Phil Twyford – Housing and Urban Development

Hon Chris Hipkins – Education

Hon James Shaw – Climate Change, Statistics, Associate Finance

Hon Megan Woods & Hon Carmel Sepuloni – Energy and Resources & Social Development

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4 Comments

  1. PartisanZ

     /  December 14, 2017

    Quite late … but it sure is quiet on this one …

  2. Blazer

     /  December 15, 2017

    yes ,this passes all the fiscal tests ,to the chagrin of the opposition.A great start for a Govt on the way,to really making NZ a better place and a fairer,decent …society.

  3. High Flying Duck

     /  December 15, 2017

    A cherry picking package that benefits the wealthy with the free tertiary education. As BE said, his family is now thousands of dollars better off under the Labour package than they would have been under National’s.
    It is next year and the year after that will be interesting. Even taking into account the very generous growth projections that bank economists have rubbished as overly optimistic, there is little to no headroom for even nominal increases in the budget for major government departments.
    Robertson will be spending the next 2 years dancing on the head of a pin.