Party policies: Family assistance

A month ago, Act's policy to cut taxes to 15c in the dollar up to $38,000 a year, and to 25c above that seemed hopelessly impossible. But now National, United Future and Labour are all offering even bigger gains for a single-income family with two preschoolers and earning around $700 a week.

But Act would still be the most generous to single people without children and to families where both parents work full-time. Labour would target middle and lower-income families.

Act

Raise 15c tax ceiling to $38,000 and cut next rate to 25c. It would keep family support and a new "in-work payment" planned under the initial version of Labour's Working for Families up to 2006, but the table assumes Act would back National's plan to drop the final $10 a week of family support due in 2007. No plan for free childcare or childcare rebate.

Greens

Abolish tax on first $5000 of income; universal child benefit of $15 a week for first child and $10 a week for each extra child; support Labour's 20 hours of free childcare from 2007; support Labour's Working for Families package, but extend $60-a-week in-work payment to all low-income families, not just those in paid work; will negotiate August 18 "Working for Families 2", extending family support higher up the income scale, after the election.

National

Raise 15c tax ceiling from $9500 to $12,500 a year; raise 21c ceiling from $38,000 to $50,000 and cut rate to 19c; raise 33c ceiling from $60,000 to $100,000; keep 39c tax above that; keep Working for Families changes and new $60 in-work payment from next April, but cancel extra $10 per child family support due in 2007; raise ceiling for full family support from $20,356 to $30,000 next April and reduce clawback rate from 30c to 20c in the dollar; replace Labour's 20 hours of free childcare with a tax rebate of 33 per cent of net childcare costs up to $1650 per child per year.

Labour

Small inflation adjustment in tax ceilings in 2008; $60 payment for families in paid work next April and extra $10 per child family support in 2007; raise ceiling for full family support from $20,356 to $35,000 next April and cut clawback from 30c to 20c in the dollar (Working for Families 2); 20 hours of free childcare for children aged 3 and 4 from 2007; review funding for playcentres.

United Future

Abolish tax on the first $3000 of annual income; keep 15c tax ceiling at $9500; raise 21c ceiling to $43,000 and 33c ceiling to $65,000; allow couples with children to split their incomes for tax purposes; support Working for Families 1 but not 2; support 20 hours of free childcare; more resources for playcentres and other parent-run early childhood education.

NZ First

No change to family support or tax rates; aim to cut personal tax rates after boosting economic growth and focusing social spending; increase grants for building and upgrading early childhood centres.

Progressive

No change in tax rates except cut in company rate; support Working for Families; reduce benefit clawback rates; keep childcare subsidy until all early childhood education can be free.

Maori Party

Abolish tax for those earning less than $25,000 a year; increase family support or cut tax for families under $25,000; no taxes on benefits; cut personal tax rates across the board; free preschool education; universal child benefit.