50,000 Families Pay No Tax
MEDIA RELEASE
30 August 1999
50,000 Families Pay No Tax
Next year, around 50,000 low-to-middle income working
families will pay no
tax, Treasurer Bill English said
today.
"It has been suggested that low income families
shouldn't have to pay any
tax. In fact, many already
don't. And past and planned tax reductions,
along with
increases in Family Assistance, mean that, in 2000/1,
the
assistance received by around 50,000 families will
more than offset the
amount they owe in tax.
"For
instance, a single-income family, with an annual income of
$30,000 and
four children under 13, will get $161 a week
in Family Assistance for the
2000/1 tax year - but only
pay $106 in tax. That means the tax system pays
them $55
a week.
"Even if that family earns $35,000, they pay no
tax, and instead get a net
benefit of $8 per
week.
"Another single-income family with an annual income
of $20,000 and three
children aged under 13 will get $88
per week from the tax system.
"And with the introduction
of the Parental Tax credit from 1 October 1999,
even more
working families are going to benefit from lower
taxes.
"It's hard to see how people can argue that tax
cuts are bad for the economy
and bad for these
families.
"This Government believes low and middle income
working families should see
the rewards for the effort
they put in. The tax reductions we've made - and
plan to
make in the future - are making a real difference to
families," said
Mr
English.
Ends