Parliament Today reports:
The Income Tax (Universalisation of In-work Tax Credit) Amendment Bill was defeated at its first reading by 61 to 60 with National, ACT and United Future opposed.
This bill sought to make the “In Work’’ tax credit payable to those on benefits.
The Green Party, which sponsored the bill, put pressure on United Future MP Peter Dunne to back the bill to select committee. However Dunne said during the week the bill would remove a financial incentive for beneficiaries to work.
Labour. Greens. Mana and NZ First all voted for DPB beneficiaries to get an extra $60 a week for not working.
As Peter Dunne pointed out, it disincentivises beneficiaries to seek employment. The in work tax credit is designed to recognise that you have extra costs when working such as transport to work, clothing etc.