Budget 2024: Finance Minister Nicola Willis admits fewer families than expected likely to get full benefit of tax plan

The day after unveiling her first Budget the Finance Minister has been forced to admit the number of families likely to get the full benefit of her tax plan is fewer than 3000 - that's even fewer than expected.

And officials have warned 9000 families will lose $1 a week as a result of a quirk in our tax and benefit systems but the Prime Minister is denying they'll be worse off.

Christopher Luxon headed to an early childhood centre on Friday morning to promote yesterday's Budget and said an average household could get up to $102 a fortnight and they're entitled - with young children - up to a further $150 a fortnight.

Last night the National Party emailed supporters saying "the average income household with two kids in ECE - $252 per fortnight".

That promise was the jewel of National's campaign crown last year but before the election was forced to admit just 3000 households would likely see the full benefit of the $250 a week.

Yesterday, Finance Minister Nicola Willis said "greater than" 3000 households would get the full package. But today she was forced to admit the opposite.

"We think it will be fewer."

Willis said it was a number she was very interested in but it was very difficult for the Treasury and IRD to model because it required predicted earnings.

Looking at the numbers, around 1.9 million households are going to be better off as a result of the tax package, while fewer than 3000 will get the full $250.

But officials from Treasury and IRD have warned ministers that 9000 of the poorest families will lose $1 a week as a result of the package because of an unintended interaction between the tax and benefit systems. 

Newshub today asked Luxon whether he accepted 9000 families would go backwards as a result of his Budget.

He replied: "No. I think this is a Government which is focused on growing the economy so that we can actually help New Zealanders get ahead."

Labour leader Chris Hipkins said the advice showed the Government's priorities were wrong.

On the whole, Treasury and IRD were both in favour of updating how taxes are indexed because Kiwis were increasingly finding themselves in higher tax brackets.

Hipkins visited renters today and asked them about their thoughts on the Budget.

One asked him: "Who is it benefitting?"

Turns out, Labour hopes it might be them. Despite not offering tax relief during its six years in power, Labour asked supporters in an email today: "Friend, will you donate some of your tax cut to Labour?"

Newshub asked Hipkins whether he'd read the room.

"A lot of people I've spoken to who don't want a tax cut right now and they don't feel like they need a tax cut right now want to see that money put to a better use," Hipkins said.

Willis said "some things never change".

"The Labour Party always thinks it can spend New Zealanders' money better than they can," she said.

Big windfall or not - Kiwis will be able to spend their tax cuts the way they wish in two months' time at the end of July.

An earlier version of this story said it was fewer than 2000 households, not 3000, due to a typographical error