Prime Minister Jacinda Ardern hit back at Christopher Luxon's criticism of the Government's cost of living payment error, saying a real waste of taxpayers money would be implementing National's policy to give a tax cut to the country's top earners.
Thousands are to be cut off from the automatic second instalment on September 1, after New Zealanders living overseas and a small number of deceased people received the cost of living payment. More than 30,000 people will have to prove to Inland Revenue they're eligible to get the $116 payment.
READ MORE: Nats: Govt 'utterly disrespectful' over cost of living error
Speaking in Parliament on Tuesday, Luxon asked whether Ardern was concerned that Inland Revenue did not know how many ineligible people may have received the first payment and whether the Government had plans to work out how much taxpayer money "has been wasted" as a result.
In response, the Prime Minister was quick to swipe back at the Leader of the Opposition and his party's policy of providing a tax cut for people earning more than $180,000 per year.
"My view is the cost of living payment represents a much more targeted and focused way of supporting New Zealanders through this cost of living crisis than a tax cut for those on $180,000 or more, which is the Opposition's policy," Ardern said.
"We stand by this Government's effort to support New Zealanders through this cost of living crisis and it seems a complete reversal of policy for the National Party - who called it a crisis - to then attack every single measure we have put forward to support New Zealanders.
"When it comes to the initiatives that we've put out, from the response from New Zealanders, I'm confident that [helping] those on $70,000 or less was the right thing to do in this period of time and I'd absolutely stand by it.
"Relative to that party's decision for instance, to have someone on $300,000 getting a tax cut of $8000, whereas someone on $45,000 would get $2.15 a week. That is an example of wasteful."
READ MORE: Cost of living payment screening tightened after errors
The first of three instalments was automatically sent out to more than 2 million people on August 1. Two further instalments are set for September 1 and October 3.
To be eligible, a person must be a New Zealand tax resident aged 18 and over, who earns $70,000 or less per year, and who is not receiving the winter energy payment. The initiative, which is projected to cost $816 million, was announced in Budget 2022.
Meanwhile, a 1News Kantar Public Poll taken earlier this month showed the majority of New Zealanders don't think people earning over $180,000 should pay less tax.
Labour brought in an additional tax rate last year for income earned above $180,000 per year at 39%.
National has promised to reverse the new tax income rate. That would mean income earned over $180,000 would be taxed at 33%.
Those polled were asked: The National Party wants to cut the top tax rate of 39% for the highest income earners in New Zealand. Do you think people earning over $180,000 should pay less tax?
The 1News Kantar Public Poll showed 65% were not in favour of cutting tax for those earning over $180,000, while 25% supported the higher earners paying less tax. Ten per cent did not know, or refused to answer.
SHARE ME