14 September 2005

Beneficiary Advocacy Federation of New Zealand [BAFNZ]

Spokesperson and advocate Paul Blair is very concerned at the number of Beneficiaries that have contacted several advocacy centres wondering how much they will receive in tax cuts if National becomes the Government.

Sadly we have had to inform them that working age beneficiaries will receive a nil increase in their Net Income from their benefit. Many Beneficiaries have heard by way of various media that Nationals tax cuts are directed at all New Zealanders.

The schedules which are an attachment to the Social Security Act would have to be changed for any benefit to people who rely on incomes solely from Work and Income. It is our understanding this is not the intention of National.

We would therefore advise anybody on a benefit not to purchase anything on hire purchase on the expectation of a future windfall through tax cuts. Our fear of this has been reinforced with reports from retailers of booming expo sales due to the anticipation of future tax cuts.

Further, if there is a change to a National led Government this would result in a return to Market Rentals for State Housing tenants. This would result in a major decrease of disposable income for Beneficiaries and low income workers alike. We repeat the message to Beneficiaries, do not over commit and remember to vote.

ENDS

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