Some families with teenagers will be left worse off by a ‘Teenagers Tax’ hidden in the Budget, says Leader of the Opposition Andrew Little.
“More than 6,000 families with teens face losing more in their Working for Families payments than they get in tax cuts. They would be left with less cash in hand under National’s plan, thanks to this ‘Teenagers Tax’.
“A family with three teens stand to lose up to $1,780 of Working for Families against a tax cut of $1,060 a year, leaving them $720 a year worse off. National says they will compensate people who lose more than $156 a year – but that’s only if they are still losing money after any accommodation supplement boost, people will have to know to apply for it, and the assistance is only temporary.
“80 per cent of families don’t get the accommodation supplement so most of the affected 6,000 families will be worse off ultimately.
“Why is any family be losing money in what is supposed to be a family package?
“First, we learned that the Single Child Tax leaves some families with one kid getting less from the Budget than those with no child. Now, there’s another fishhook in a Teenagers Tax that delivers an actual cut to the incomes of some families.
“Families on typical incomes of $66,000 to $97,000 with teenagers would be shocked to go on the Government’s own Budget calculator and see they lose money under National’s plan.
“Why does National’s so-called family package have so many nasty surprises for families? It all points to a shoddy attempt at an election bribe that’s backfiring.
“After nine years New Zealand deserves better. Labour has a fresh plan to invest in housing, health, education, and infrastructure,” says Andrew Little.