39230 (2024). Hon Carmel Sepuloni to the Minister for Social Development and Employment

39230 (2024). Hon Carmel Sepuloni to the Minister for Social Development and Employment: What feedback or advice, if any, did the Ministry provide the Minister regarding the 9,000 households negatively affected by the the personal income tax threshold changes made as part of Budget 2024, by title and date?

Hon Louise Upston: The impact in the Regulatory Impact Statement (RIS) that the Member asks about is the responsibility of the Minister of Revenue because it does not affect people’s weekly benefit rates but instead the end-of-year tax refunds. That is why I did not receive advice on the matter, and I am not a permanent member of the Cabinet Committee that considered the Taxation (Budget Measures) Bill and the associated RIS. In so far as I am responsible for the matters the member asks about: The Ministry of Social Development does not consider that the cohort of beneficiaries the RIS identifies will be worse off under the personal income tax changes in respect of their weekly benefit income. This is because they will continue receiving the correct benefit amount weekly before and after the tax changes and will not experience a reduction in their net benefit rate on 31 July compared to 30 July. MSD supplied this view in an IR briefing to the offices of the Ministers of Finance and Revenue in May. This is also my answer to written parliamentary questions 38921 (2024), 38922 (2024), 38923 (2024), 38924 (2024), 38925 (2024), 38926 (2024), 38927 (2024), 38928 (2024), 38929 (2024), 38930 (2024), 38921 (2024), 38932 (2024), 38933 (2024), 39044 (2024), 39043 (2024), and 39228 (2024).