Two billion dollars will go back into the pockets of New Zealand families, with the Government unveiling a combination of tax cuts, a boost to the accommodation supplement and Working for Families.
Salvation Army says the budget is a step in the right direction to correct the growing imbalance in New Zealand society between the “haves and have nots”.
“Although all the areas identified by the Army have not been addressed Budget 2017 delivers a substantial boost to low income working families” said Ian Hutson the Salvation Army’s social policy director.
In its media release the Salvation Army says:
- The most significant boost for low income working families will be achieved by the movement of the $14,000 tax threshold to $22,000.
- Increases in the Family Tax credit and increases in the accommodation supplement will make things easier for vulnerable working families.
The Salvation Army says while for beneficiary families the gains are not nearly as great these families will benefit from Accommodation Supplement increases and an extra $350 million of social housing rent subsidy.
“Our concern is that for the Accommodation Supplement gains to be effective, housing supply also needs to increase.”
The Salvation Army had asked for a commitment of $500 million dollars in capital funding a year for social and affordable housing, but the Government’s commitment in the budget to capital for housing supply is well below this.
They say while supporting Governments efforts to move people from benefits to work where possible, for some beneficiaries’ health and childcare means work is not a realistic possibility.
Earlier in the year, in its written submission on the Budget Policy Statement Caritas Aotearoa New Zealand focused on four areas in its call for the government to ensure economic growth brings a better quality of life for everyone in New Zealand and that no one misses out on essentials for wellbeing.
The four areas were: the well-being of vulnerable communities; homelessness; protection of migrant workers; and climate change.
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