The ACT party confirmed, on Tuesday, that it did not plan to support the provisions of the TOLIS tax credit legislation when they are brought back into Parliament.
While nothing ever seems certain about TOLIS, this latest pronouncement from ACT appears to be the fatal blow.
When the legislation was last bought into Parliament, nearly two weeks ago, the Government believed it was going to pass the bill with the support of New Zealand First, however NZ First did a last minute U-turn and withdrew its support. That move didn't kill TOLIS as ACT voted with the Government to withdraw the bill rather than oppose it.
Now though ACT has come out and said it will not support the legislation next time.
The party has primarily opposed TOLIS on the grounds that it was too cumbersome and too costly to administer.
However, it has now put a different spin on its opposition.
"The ACT position is unchanged. Of particular ongoing concern to the caucus is the effect on low-income earners. The proposal would mean many would no longer be eligible for family support, student allowances and other income-related benefits," deputy leader Ken Shirley says.
Shirley says while it may seem attractive for low-income earners to get a tax cut on their savings, it would actually take away their eligibility for several benefits.
"Mr Birch won't tell you that. Nor will the superannuation salesman. But the fact is it will deprive many low income earners of their right to benefits," he says.
The ACT party confirmed, on Tuesday, that it did not plan to support the provisions of the TOLIS tax credit legislation when they are brought back into Parliament.