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Home / New Zealand

Labour plans to release its own fiscal package

Nicholas Jones
By Nicholas Jones
Investigative Reporter·NZ Herald·
28 May, 2017 05:05 AM2 mins to read

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Andrew Little says Labour won't be hurried into announcing its fiscal plan. Picture / Michael Craig.

Andrew Little says Labour won't be hurried into announcing its fiscal plan. Picture / Michael Craig.

Voters will find out how their income would change under Labour when the party releases its own fiscal package in a few weeks.

Labour leader Andrew Little wouldn't be drawn on what changes his party would make, and how that could affect incomes.

"We will take a look at the tax package that is part of this year's Budget," Little said. "We're not going to be hurried into it. There are a lot of things that we have long said are reliant on current, up-to-date figures. We've got those now.

"Nobody is going to quibble about having an extra few dollars in your pocket, but in the end the Government has to pay for things like schools and hospitals and roads. And just continually cutting taxes without doing anything about lifting wages is not the answer."

Labour wasn't opposed to increases to Working For Families support outlined in Budget 2017, Little said. He indicated there would be greater increases under Labour's plan, saying WFF was a more targeted way to get support to where it was needed most.

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National delivered a $2 billion a year package of tax cuts of up to $20 a week in the Budget, released on Thursday, by shifting the two bottom thresholds from next April.

Labour and the Greens have both criticised the tax changes, which lifted the thresholds from $14,000 to $22,000 and from $48,000 to $52,000. They have not changed since 2010.

Finance Minister Steven Joyce has said he is keen to deliver further cuts as fiscal conditions allow - and on Friday would not rule out taking that to the polls as early as September's election.

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Little said if that happened National would need to explain the trade-off.

"This is all very short-term. It's about scratching itches that exist today, it's not about setting up or creating any foundations for anything in the future."

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