Richard Harman at Politik on core points of the budget:
Exclusive: What will be in Joyce’s Budget
A “Families’ Income Package” is likely to be at the core of this week’s Budget.
Sources close to the Government have “leaked” details of the Budget to POLITIK.
Finance Minister Steven Joyce has been signalling for some time that the Budget would involve movements in the tax thresholds.
POLITIK understands that the movements will be for the two lowest thresholds.
Currently tax on income up to $14,000 is 10.5% and for income from $14000 – $48000 tax is 17.5%.
Those thresholds will both rise.
There will also be changes to Working for Families and an increase in the Accommodation Supplement.
POLITIK has been told that added together the tax threshold and Working for Families moves could mean families where one parent is in work with two children see their income rise by what is being described as a “significant” weekly figure.
Key suggested a “meaningful tax cut” of about $20 a week to people earning around $68,000 a year would cost about $3b.
That has been rejected.
POLITIK understands that by concentrating the cuts on the lower tax thresholds, the increase per person will be significantly higher than $20 a week for those lower income earners. …
Plenty more details at Politik.
— Tim Murphy (@tmurphyNZ) May 22, 2017