Any rise in NZ Super is good news
It was great to attend the Seniors Expo in the Waikanae Memorial Hall this week, which attracted a wide range of exhibitors and people.
While I was there several people chatted to me about the Prime Minister’s plan to raise superannuation higher than any potential rise in GST.
I’m very encouraged by John Key’s commitment and agree that any changes to GST have to be matched with tax cuts and a boost to superannuation.
This is especially important for Kapiti and Horowhenua with a large number of retired people choosing to live here.
There are two ways that NZ Super will rise, if the Government decides to increase GST in the May Budget.
Firstly, a reduction to income tax means that Super payments will automatically go up. This is because NZ Super is based on the average after-tax income.
Secondly, the Government will also increase Super by just over 2% to match the general rise in prices.
This means that superannuitants will have a decent boost to their income, over and above any rise in prices.
To keep up with inflation over the last year, on April 1 superannuation will increase by about 2%. For a married couple this means an extra $11 a week.
We are also looking to boost Working for Families and other benefits. This should mean the majority of people are better off.
Overall, the Government is not trying to raise taxes but to get a better balance. We’ve inherited a very weak economy that now needs to focus on encouraging savings, investment and hard work.
It’s part of a bold plan to boost our economy, which includes other initiatives around science, ultra fast broadband and local roading and rail upgrades.
Growing the economy means higher pay, more opportunities and a better standard of living for everyone. I want Kapiti and Horowhenua to be a place where our children and grandchildren want to live, work and raise their own families.
It’s hard to take the Labour Party seriously on GST. They won’t tell you if they will lower GST or raise taxes if they are lucky enough to win the 2011 election.
They also seem to have forgotten about putting GST up in 1989 with no compensation for anyone.
Like everyone else, I’m looking forward to more detail in the May 20 Budget and getting the balance right for everyone.