KEY POINTS:
Revenue Minister Peter Dunne has indicated the Government will change the income tax thresholds in the next stage of its budget programme.
Finance Minister Michael Cullen proposed that in 2005 but dropped the plan in his May 17 budget in favour of savings incentives through KiwiSaver.
He said then, however, that the Government would still consider income tax cuts in the future.
Mr Dunne told the Dominion Post that the best "bang for your bucks" would come from threshold changes rather than direct cuts.
Threshold changes have been the policy of his United Future party for several years.
The budget cut the corporate tax rate from 33 cents to 30 cents, and Dr Cullen has previously said there would be an eventual flow on to income tax rates.
- NZPA