May 25, 2015
Kiwisaver kickstart loss offset by gains for whanau
Maori Party co-leader Te Ururoa Flavell is defending the axing of the $1000 Kiwisaver kickstart, saying it will be offset by other changes in this year’s Budget such as a benefit increase.
The payment into the accounts of people joining the contributory superannuation scheme ended on Budget night, but the maximum $25 a week increase for beneficiaries for children doesn’t kick in for almost a year.
Mr Flavell says the advice he received is that the take up of Kiwisaver was slowing anyway.
"While the loss of that $1000 is there, there is still a facility there to be utilised no different to what some of us used to do where we were at primary and taking our bankbooks along to school every Monday morning and taking some money in. That ability is still there, it hasn’t been taken. It just happens that besides that there isn’t that one for one kick start of the amount of the money you get straight away so it was un unfortunate circumstance but on the opposite side looking at the whole package I think we’re in a good space," he says.
He says the priority for the Maori Party is looking after tamariki and whanau, and it takes credit for improvement there.
As well as a small rise in benefits, requirements were changed so sole parents must start looking for work once their youngest child is three, and beneficiaries in part time work must work 20 hours rather than 15.
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