Key points:
- The Government's promised tax cuts are set to come into effect tomorrow.
- When asked on Breakfast this morning if he would donate his tax cut to charity, Luxon said he would "absolutely" do it.
- Labour's finance spokesperson Barbara Edmonds said Kiwis are "worse off" with the Government "delivering peanuts for most people".
With the Government's promised tax cuts coming into effect tomorrow, Prime Minister Christopher Luxon has pledged to donate his cut to charity.
The tax policy changes will apply to around 3.5 million people, according to Finance Minister Nicola Willis and Revenue Minister Simon Watts.
The tax plan averages $3.7 billion per year and has been funded by savings and revenue initiatives, including cuts to the public service.
How much a person receives from the tax changes will be different depending on their income and circumstances.
A minimum wage earner would be better off by around $12.50 a week, while a single adult earning $55,000 a year will be better off by about $25.50 a week.
1News also asked MPs whether they thought the tax cuts would make a difference for people. (Source: 1News)
Meanwhile, a sole parent with two teenage kids will be better off by around $45 a week, while a retired couple receiving superannuation with no other income will get $4.50 a week, rising to $13 a week.
With minimum wage earners better off by around $12.50 a week, Luxon was asked on Breakfast if this would be enough to keep those workers on top of their bills.
"It's a start," he said, but admitted, "We've got to do many, many things."
"We're giving people tax relief for the first time in 14 years, which is good for low and middle-income working New Zealanders," he said.
"At the same time, we're working hard on the causes of inflation, to get inflation down, which has been a major, major problem in our economy over the last few years."
Luxon was then asked if it was fair that he was getting more money in his tax cut than someone on minimum wage.
"The programme has been designed to cap out so that someone like me gets $20 a week, but someone who is on middle income actually gets more than I get," he said.
"That's actually how it's been designed for low and middle-income earners.
"So yes, someone like me gets $20 a week, but equally, people who are on middle incomes across New Zealand are gonna be better off than I will."
Luxon said the policy was designed as fairly "as we can".
The PM was then asked if he would donate his tax cut to charity like he did with his pay rise.
He said he "absolutely" would.
"My wife and I, and our family, give away a lot of money, and we've been doing that since we started as 20-year-olds."
You can check the Government's Budget tax calculator to find out if you will be receiving a tax cut and by how much.
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