GST compensation for beneficiaries

The National-led Government's tax reform package will see beneficiaries compensated tomorrow for the rise in GST.

"Tax reform is part of the National Government's drive to boost economic growth, create jobs, and raise incomes," says Social Development Minister Paula Bennett.

"Tax cuts coupled with compensation for the rise in GST, means that beneficiaries will not be adversely affected by the October 1 changes," says Ms Bennett.

"Increases to abatement rates will also allow beneficiaries to earn more without it reducing their benefit payments," says Ms Bennett.

The Government's Future Focus package came into effect on Monday, increasing abatement thresholds from $80 to $100 per week.

Part-time thresholds have also increased from $180 to $200 per week.

"The tax changes, compensation and increases to abatement rates, mean beneficiaries are compensated for the rise in GST and have a greater incentive to work," says Ms Bennett.

"I strongly believe people are better off in work; it's better for them individually, for their children and their families," says Ms Bennett.

Find out how the tax changes will benefit you. Visit the tax calculator at: www.taxguide.govt.nz