Tax cuts and lowering child poverty reduction targets w/ Labour’s Carmel Sepuloni: 1 August, 2024

This week the government is implementing their long-awaited tax cuts. The tax cuts differ but are generally small cuts. A couple earning $100,000 a year with no children would pocket an extra $80 a fortnight for example, while a single childless person on minimum wage will save $25 a fortnight.

The tax cuts have been celebrated by some while being criticised by others for being minimal relief, especially for those who need relief from the cost of living the most.

The Government has also put aside an extra $216 million to pay for the scrapping of the excise tax on tobacco. Labour’s health spokesperson has criticised this move, saying the money would be better spent elsewhere.

And the Minister for social development quietly lowered child poverty reduction targets from 13.3% to 9% for 2024/2025 and 11% for 2026/2027. The government says this to make the targets more achievable.

For our weekly catch-up with the Labour Party, WIre Host Caeden spoke to Labour Deputy Leader Carmel Sepuloni about these topics.