From next month, the average household will be about $25 a week better off, even with GST rising to 15 per cent. Someone on the average wage will be almost $15 a week better off. And a retired couple, living in their own home and receiving NZ Superannuation, will be $11 a week better off.

On 1 October, New Zealand Superannuation, Working for Families, and benefit payments will increase immediately by 2.02 per cent – to compensate for the rise in GST.

Find out how the tax changes will benefit you. Visit the tax calculator at www.taxguide.govt.nz

The tax package will be a welcome boost to household budgets in our community, and will help hard-working families get ahead.

It will also help the economy, by tilting it towards savings and exports, and away from extra debt, excessive government deficits and spending, and borrowing for things like property speculation.

The tax changes are an important part of National’s six-point plan for a stronger economy. Our plan is boosting growth and creating sustainable jobs.

On 1 October, the first part of the tax package kicks in. We’re lowering personal taxes and the tax on savings – such as interest and dividends – along with a rise in GST. This will give people more choices, encourage saving, and help boost our local businesses.

The second part of the package kicks in next year. We’re dropping company tax to 28 per cent, encouraging Kiwi businesses to grow and ensuring they remain competitive. We’re also making changes to property tax to make the tax system fairer and further encourage saving and investment in our businesses.

The Government’s tax package rewards effort and helps attract and retain skilled people in New Zealand. As the economy grows, we expect to create 170,000 new jobs in the next four years.

National is firmly focused on lifting New Zealand’s long-term economic growth to create jobs, boost incomes, and raise the living standards of hard-working Kiwis. We need to do this so we can provide the world-class public services that all New Zealanders deserve.

We are working hard to provide families and our communities with the financial security, opportunities, and higher incomes they need for a brighter future.

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