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Fiscal Impact

  • $2b package
  • The full average annual cost of the Family Incomes Package is $2.0 billion, and the total cost is $6.5 billion over the next four years.

Family Incomes Package cost by component

($MILLIONS) 2017/18 2018/19 2019/20 2020/21
Reduction in tax revenue including IETC 486 1,896 1,895 1,976
Working for Families 97 373 318 310
Accommodation Supplement 87.6 361.6 380.3 399.7
Accommodation Benefit 6.3 19.5 19.5 19.8
Transitional Fund 1.1 0.5 0.4 0.3
Consequential impacts [1] -74.3 -575.2 -760.9 -693.7
Operating balance impact 603.6 2,075.3 1,852.3 2,012.0

[1]Consequential impacts include, for example, increased GST revenue as people spend their additional after-tax income, a reduction in gross benefit expenditure (as the net payments to benefit recipients are unchanged), partially offset by increases in New Zealand Superannuation payments due to an increase in the after-tax average wage (to which it is linked).

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