1 Oct 2008

Tax cuts take effect

7:58 pm on 1 October 2008

Tax cuts introduced in the 2008 Budget take effect from 1 October.

The cuts are worth up to $12 a week for someone earning up to $30,000 a year, rising to $28 for someone earning more than $70,000.

There will also be boosts to Working for Families Tax credits and to payments to superannuitants.

ACT Party leader Rodney Hide says they will make a difference but do not go far enough.

Debate during the election campaign is likely to focus on personal tax cuts and on which party offers the biggest cuts.

Labour's tax cuts are designed to increase over three years.

Meanwhile, National is promising cuts worth about $50 from as early as next April.

Radio New Zealand's political editor says National's likely coalition partners are sceptical about whether its plan is credible and affordable.