Budget 2010
Two weeks ago the government unveiled Budget 2010 which has been well received locally as fair and forward thinking.
It’s clear we need to grow the economy, lift incomes and create more opportunities for people in the Kapiti and Horowhenua regions.
This is why the government is reforming the tax system to create the right incentives for people to get ahead. We want to encourage work, savings and investment rather than borrowing and property speculation.
Tax cuts combined with the small rise in GST means that the average household on $76,000 a year will be better off by around $25 a week, or $1300 a year.
Beneficiaries will be compensated for the GST increase and on 1 October superannuitants will see an increase of around $11 a week per couple, or $560 per year.
Overall, this is the biggest structural change to the tax system in 25 years. 73% of income earners will be paying less than 17.5% in tax.
The health sector gets an extra $2.1 billion over the next four years. MidCentral DHB receives an extra $13 million and Capital and Coast DHB receives $24 million, which will help them in their challenge to balance the books.
In education there is an extra $1.4 billion over the next four years, including a large boost to operational funding which will help the many schools in the electorate.
There is more funding available for community law centres such as the one in Levin that provides an important service locally.
There is ongoing large investment in infrastructure, such as the Levin to Wellington expressway including Transmission Gully, and $250 million into upgrading KiwiRail.
I’m proud to be part of a National government which has successfully navigated the worst global recession in a generation. Forecasts show the economy will start growing again at around 3% for the next four years, which is great news and shows that our policies are working.
The 2010 Budget will now drive the New Zealand economy forward by focusing on investment and exports instead of debt and consumption.
You can find out how you’ll benefit from the tax package at my website www.nathanguy.co.nz.