KEY POINTS:
New Zealand First is calling for a tax free threshold for up to $5200 to be set and for GST to be reduced to 10 per cent over three years.
Party leader Winston Peters told the Auckland Association Grey Power AGM in Auckland this morning, in the lead-up to tomorrow's budget, that there was seldom much in budgets for the elderly but his party had secured $530 million over the past two budgets for the eldercare sector.
He said international finance prices, oil prices, food shortages raising prices needed to be addressed.
Had NZ First been in a position to deliver the budget it would set a tax free threshold at $5200 of income earned.
For superannuants that would give an extra $21 a week and those of other rates would get up to $14.
"We would also begin an incremental reduction in the level of the Goods and Services Tax on all products," Mr Peters said.
"Over three years the party would reduce the tax back to 10 per cent," the initial rate set before it was raised to 12 per cent.
The policy would cost $4.5 billion.
"We actually believe it would be less than $4.5b because that money returned to people on low and fixed incomes would be recycled creating more tax revenue.
"The combination of a tax free threshold and lowering GST to 10 per cent would have the effect of increasing the purchasing power and lowering living costs."
Mr Peters said his party had achieved an increase in superannuation, and in the budget had got $18m funding for free off-peak travel on public transport for the elderly and $4.5m for greater access to hearing aids.
- NZPA
