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Dublin: 5 °C Wednesday 26 February, 2020

New Zealand’s ‘paperboy tax’ criticised

Kids’ pocket money is up for grabs from the New Zealand government .

'Paperboy tax' for taxing paperboys and papergirls
'Paperboy tax' for taxing paperboys and papergirls
Image: (Via Flickr/Weibel Kids)

OPPOSITION POLITICIANS in New Zealand have heavily criticised new measures that will stop school-aged children from getting a tax refund if they earn wages for part-time work.

The so-called ‘paperboy tax’ has prompted accusations that the government is penny-pinching from kids.

According to the New Zealand Herald Prime Minister John Key has rejected the criticism, stating that it was done “primarily to try to tidy up the tax code”.

Children earning under NZ$2,340 who paid tax to their employers  are no longer entitled to claim it back.

Labour Party leader David Shearer released a statement saying that the government is failing to tackle the bigger issues and is ”pinching pennies from paperboys”.

He added: “We should be instilling a work ethic in our kids and encouraging them to save, not penalising them for getting part time jobs”.

The changes will bring in NZ$14 million a year over the next four years, say treasury officials.

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