“Labour’s inflation adjustment of pensions, benefits and student allowances has caught Grant Robertson telling porkies. Just last month he said wages were rising faster than inflation, but he forgot to mention after tax wages, which is what benefits are tied to,” says ACT Leader David Seymour.
“Labour’s inflation adjustment of pensions, benefits and student allowances has caught Grant Robertson telling porkies. Just last month he said wages were rising faster than inflation, but he forgot to mention after tax wages, which is what benefits are tied to,” says ACT Leader David Seymour.
“The net result is that workers are taking home less than inflation due to higher taxes, but beneficiaries are getting uncoupled from that and given an increase in line with inflation. Inflation to December was 7.22 per cent, but net average wage only increased by 6.24 per cent, leaving workers with a one per cent real pay cut.
“In a February 1 press release, Robertson said “More Kiwis in work as rising wages match inflation.” That followed a statement to Parliament in November saying “this side of the House is able to offer New Zealanders is record low unemployment, wages growing faster than inflation.”
“It is not surprising Robertson was telling porkies on wages and tax, just look at the leadership he has to follow. It’s less than a week since the Prime Minister had to correct the parliamentary record for wrongly saying his Government was taking less tax as a percentage of GDP. In fact, since the 2018 financial year, the Government has gone from taking 27.1 to 30.2 per cent. That’s why taxpaying workers are feeling the pinch.
“Never mind, those who receive pensions, benefits, and student allowances will be looked after, while those who pay the bill are left behind. The right approach would be to cut wasteful spending, then taxes, increasing incomes for workers, beneficiaries and superannuitants alike.
“Instead, the Government has splashed the cash while forgetting about those who work save and invest to create wealth in the first place. The only good thing about this sad episode is that Robertson has been exposed telling porkies. Yes, average wages rose faster than inflation, but not after he took his tax take.”