A Labour Lead Government
With the recent change in Government, Labour campaigned it would focus on housing, health, education, police and infrastructure while creating jobs and lifting the income of families. To achieve this Labour needs to repeal the National Governments proposed tax cuts.
The new government has already fast tracked changes to student allowances and loan entitlements, coming into effect from April 2018, meaning an additional $50 per week for those living away from home. The fees-free policy is expected to be released over the coming weeks with effect from January 2018.
Government will then legislate changes to the Working For Families packages introducing
· the Winter Energy Payment, up to $140 a month for superannuants and beneficiaries;
· the Best Start payment, up to $60 a week for each child in the first years after Paid Parental Leave ends;
· and an increase in Paid Parental Leave from 18 weeks to 26 weeks.
A Tax Working Group will be set up to consider options for further improvements in the structure, fairness and balance of the tax system which Sir Michael Cullen will chair.
We do expect to see more changes coming up especially around the Reserve Bank Act, immigration and foreign ownership policy initially but also tax changes which will likely be released in detail with the annual budget and we will comment on those in the next newsletter.