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NZ money - Source: ONE News -
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All New Zealanders could have received a one-off lump sum payment of $300 had the government taken Treasury's budget advice earlier this year.
The Treasury report released on Thursday was given to cabinet before the Budget to advise how to get the government's books out of the red.
The idea would have seen future tax-cuts slated for April 2010 and 2011 cancelled, with the $1 billion saved instead divvied into lump sum payments.
Two options for giving out the cash included all New Zealanders receiving a one-off payment of $300, or $1,200 given to beneficiaries and superannuitants, on the basis they were more likely to stimulate the economy by spending it.
Treasury said the payment would have been "timely, temporary and targeted" and could have helped offset the effects of cancelling the tax cuts and other measures to improve the government's fiscal outlook.
A similar move was made across the Tasman in February when the Australian government gave nearly $AU1,000 to low and middle income earners in the hope they would inject it back into the economy via spending.
The Treasury-recommended payments would have been made next month.
In the government's May Budget announcement it suspended, rather than cancelled, the two upcoming tranches of tax cuts in a bid to bring government debt under control, but it did not take Treasury's advice of the lump sum payment.
Treasury also advised the government to take a contribution holiday from the New Zealand Super Fund for eight years - a move which the government made but extended out to 10 years.
Would you have liked $300 in your pocket. What would you have done with it? Have your say on our messageboard below.
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Post new comment2old said on 2009-06-26 @ 09:27 NZDT: Report abusive post
The week the Australian Govt. made a one off payment to all, the poker machine take for that week went up by 40%. That equates to tens of millions of dollars. The same would happen here. A fair proportion of the billion dollar handout would end up in the hands of the TAB, Pokies, Alcohol outlets and Pubs. What a tragic waste of taxpayers money that would be.
sarahp said on 2009-06-26 @ 08:44 NZDT: Report abusive post
I'd like to say something clever like straight into KiwiSaver or onto my student loan, but the reality is I would have spent it on clothes or shoes.
Laurie Reid said on 2009-06-26 @ 07:32 NZDT: Report abusive post
Some Jet Star flights all around NZ. ($60) Then I would need the rest for hotels and Airport food after those delays ($240)