Thursday, February 22, 2024

Luxon: FamilyBoost childcare tax rebate to help families

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National’s FamilyBoost childcare tax rebate is expected to help 130,000 low- and middle-income families keep more of what they earn, with up to $75 more in their after-tax pay each week. Photo Hamsterfreund from Pixabay

A National Government will support Kiwi families bearing the brunt of the cost-of-living crisis by delivering the FamilyBoost childcare tax rebate of up to $75 per week, National Party Leader and Botany MP Christopher Luxon says.

“Kiwis are doing it tough right now because of Labour’s cost-of-living crisis. It is particularly hard for young families to make ends meet when they’re facing rising rents and mortgage rates, skyrocketing grocery bills and paying for childcare.

“National will help Kiwis meet those costs.”

National’s FamilyBoost childcare tax rebate is expected to help 130,000 low- and middle-income families keep more of what they earn, with up to $75 more in their after-tax pay each week.

Families earning up to $180,000 will receive a 25 per cent rebate on their early childhood education expenses, to a maximum of $3900 per year depending on their income.

“A teacher and a plumber earning $125,000 between them who are spending $300 a week on childcare would receive a weekly rebate of $75, paid fortnightly by IRD to their bank account,” Luxon says.

“FamilyBoost will be available to families using licenced early childhood education providers, including kindergartens, kōhanga reo, education and care centres and licenced home-based care.

“FamilyBoost will cost $249 million per year and will be fully funded from money saved reversing the blow-out in wasteful spending on public sector consultants overseen by Chris Hipkins as Public Services Minister.

“Labour’s priority is growing the central government machine. National’s priority is helping Kiwis get ahead. By cutting Labour’s consultancy spend National will make it happen.

“National has a plan to address the drivers of the cost-of-living crisis – provide tax relief so Kiwis can keep more of what they earn, ease economic bottlenecks like restrictive immigration settings, restore discipline to government spending, reduce costs on businesses and return the Reserve Bank to a single focus on inflation.

“Labour has failed to present a plan for the economy. FamilyBoost will provide relief for young families by letting them keep more of what they earn.”

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