Hon John Key

National is committed to lifting economic growth, and securing a brighter future for all New Zealanders.

We are committed to maintaining New Zealand Superannuation payments linked to 66 per cent of the after-tax average wage, and keeping the age of eligibility for Superannuation at 65.

Future funding to secure this is locked into the National-led Government's long-term spending path, and is reflected in all of the government's accounts.

To continue paying Super far into the future, even though our population is getting older, we need a healthy, growing economy.

Only a government which has debt under control will be able to continue paying for Superannuation, as well as health care, law and order, and education, into the future.

That's why we want to encourage more investment, savings and exports and have less borrowing and consumption.

A key part of New Zealand's economy is our tax system.

Last year, we asked an expert, independent team called the Tax Working Group to look at the tax system. Their advice was that the mix of taxes in New Zealand does not promote the kind of growth we need.

We want taxes that create incentives to work hard, save, and get ahead. We also want taxes that are fair.

That's why National is considering personal tax cuts across the board. And that's why we are also carefully considering a modest increase in GST, to no more than 15 per cent.

We know that a rise in GST would have an impact on lower and middle income New Zealanders.  For that reason, any increase would be accompanied by reductions in personal taxes, as well as up-front increases in benefits, Superannuation, and Working for Families payments.

Superannuitants would receive a double benefit from these changes.  The first is that a personal income tax cut would affect Super payments, as well as other income such as interest or dividends.

The second benefit would be an immediate increase in Super payments to cover the higher prices

National believes that a tax switch would encourage savings and investment, help boost economic performance, and give young New Zealanders a reason to stay here instead of going overseas.

We are committed to securing a brighter future for all New Zealanders.  Our tax system will play a crucial part in that future, and we are determined to get it right.