“Finance Minister Grant Robertson has shown he has no plan to reduce spending and takes no responsibility for the part he’s played in the cost of living crisis,” says ACT Leader and Finance spokesperson David Seymour.
“Finance Minister Grant Robertson has shown he has no plan to reduce spending and takes no responsibility for the part he’s played in the cost of living crisis,” says ACT Leader and Finance spokesperson David Seymour.
“The government’s out of control spending has fuelled inflation. When asked on Newshub Nation if he takes responsibility, he didn’t even address the question.
“He’s happy to keep spending on things nobody wants or asked for, like Three Waters. It’s time for Robertson to take some responsibility and tighten his belt like Kiwis are having to do.
“ACT has a plan. ACT’s Alternative Budget shows how expenditures could be reduced by $7.2 billion with measures including an end to corporate welfare and returning the number of bureaucrats to the the 47,000 Labour inherited.
“ACT’s Alternative Budget then adds $1.5 billion of new spending for paying good teachers more, matching Australia with defence at two per cent of GDP, and sharing GST on construction with local councils to get housing built.
“That allows $3.3 billion of tax cuts, reducing the middle income tax rate down from 30c to 17.5c in the first year. A Nurse with one child, for example, earning $70,000 would receive around $2,300 in tax relief.
“People earning between $2,000 and $48,000 will get a Low and Middle Income Tax Offset of up to $800 that offsets the additional $980 in income tax. They will also receive an additional $253 in carbon tax refunds for every person in their household, leaving them better off overall. ACT’s tax swap leaves everybody better off.
“The net effect of these changes is that ACT’s changes reduce the deficit by $2.3 billion in the Financial Year 2022/23. The net effect is a reduction in fiscal impulse, pulling back inflation.
“Subsequent further tax cuts, reducing the 33 per cent rate to align with the Company Tax Rate of 28 per cent, would be implemented as soon as inflationary and fiscal conditions permit. Implementing them in Financial Year 2023/24 would allow a Government following ACT’s budget to return to Surplus by 2024/25 on current forecasts.
“Importantly, our plan results in operating allowances that exceed Labour’s from Budget 2021 in most years and equal theirs from Budget 2022 in 2023/24. We are able to deliver tax cuts without touching a single nurse, teacher, or front line public servant. In fact, they will all be better off thanks to ACT”s tax relief.”