Labour asks Kiwis to donate tax cuts to them

Labour is asking Kiwis to hand over their tax relief to the party after heavily campaigning against the cuts. 

In an email to its constituents, Labour continued to slam the size of the tax cuts as "just a few dollars", before asking for donations. 

"Friend, will you donate some of your tax cut to Labour?" the email from Rob Salmond, the party's general secretary, said.

"That way, the tax cuts really can help create a better future for Aotearoa New Zealand - by getting Labour back into Government."

The email added the donations will be matched by its matched fund donors. 

"Every dollar you donate, we get two dollars. If you donate a week's worth of tax cuts, we get two.  

"If you donate two weeks' worth of tax cuts, we get four. It's that easy," the email said. 

Finance Minister Nicola Willis said during her post-Budget speech in Wellington that she had seen the Labour Party's "newfound interest in tax relief".

"This may seem particularly cheeky and somewhat hypocritical given their opposition to tax relief, but I think it's utterly consistent with the Labour Party view that they can always spend their money better than you can," Willis said.

Labour asks Kiwis to donate tax cuts to them
Photo credit: Newshub.

Speaking to media on Friday, Labour leader Chris Hipkins doubled down on the party's request.

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

"The Labour Party is doing fundraising because we actually think that this Budget's got the wrong priorities."

He denied it was hypocritical.

"How people spend their own money is up to them, but those who want to support us to change the Government - I certainly welcome their support," Hipkins said.

He added he doesn't intend to keep his tax cut and will donate it to charity and Labour's campaign.

Labour has heavily criticised the Government for prioritising tax cuts, while scrapping other initiatives.

As part of Thursday's Budget, the Coalition Government adjusted New Zealand's tax thresholds for the first time in 14 years.  

It was a delivery on National's heavily campaigned on election promise of tax cuts for low to middle income workers. 

The tax cut package, which also includes rebates like the FamilyBoost, will cost $14.7 billion over four years. 

Hipkins said the tax cuts would contribute to "fuelling inflation" and called them "fiscally irresponsible".  

Willis said the tax cuts were fully funded through savings and revenue initiatives, and Treasury has predicted inflation to fall to target later this year. However, overall, the Government is increasing borrowing by $12 billion - which equates to the bulk of the tax cuts. 

Hipkins added New Zealanders were not getting the previously promised amount from the Government. 

"The $250 a fortnight promised by National during the election campaign undoubtedly has not been delivered. The tax cuts that have been delivered won't keep up with the increasing cost of living, and the changes made in this Budget will see Kiwis paying more," he said. "New Zealanders will be worse off." 

Newshub spoke to Kiwis about the tax cuts on Thursday, with reactions ranging from "bloody good" to "pretty useless". Some of those spoken to said they would be helpful while others found they wouldn't make a huge difference in the current economic climate. 

The tax cuts come into effect from July 31.