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Senior citizens across New Zealand will have good reason to
celebrate on Thursday with a Budget increase in their
pensions.
ONE News has discovered that along with personal tax cuts,
Labour's election year Budget will hand out money to older New
Zealanders.
Labour is planning a Budget surprise to boost the incomes for one of the most needy and politically powerful groups in New Zealand.
New Zealand First leader Winston Peters is also trying to woo senior citizens and he's doing it in true Peters style.
"You're going to show them that at the end of the day your vote is as good as theirs," Peters tells Auckland Grey Power members.
And he's keen to get those votes with election year sweeteners.
He's promising to raise the level of superannuation from 66% to 68% of the average wage for a married couple.
Peters also promises to slash GST from 12.5% to 10% at a cost of $4.5 billion over three years, and to wipe tax for the first $5,200 earned.
This means an extra $21 a week for married superannuitants.
Peters says implementing a tax-free threshold along with lowering GST would relieve the current pressures of high living costs.
He is laying out the policies as deal breakers come post-election talks.
"Well I and my colleagues have a reputation for not selling our votes down the drain. We negotiate hard and I'm confident of the outcome, yes," he says.
But it may take some negotiating.
"It would encourage consumption. Obviously it would help the family budget but it would also be cutting GST on items that hadn't gone up as much as some items of food and petrol prices," says Finance Minister Michael Cullen.
National Finance spokesman Bill English says his party is not considering cutting GST.
"Our top priority is to reduce personal income tax," he says.
There are about half a million people aged over 65 in New Zealand. They have been Peters saviours in the past and the question is will they be again?
Peters may be on strong ground because it's older voters who may be the power brokers come election day.
