Monthly Archives August 2008

FTA Agreement with ASEAN

August 30, 2008 International FinanceNew Zealand Finance  No comments

New Zealand and Australia has reached a free trade agreement with ten southeast Asian nations. Negotiations between The Association of Southeast Asian Nations (ASEAN), New Zealand and Australia have finally conclude in Free-Trade Agreements, on both goods and services. The accomplishment has been hailed as a milestone for New Zealand by Wellington Regional Chamber of Commerce Chief Executive, Charles Finny.

It is expected that the full details of the Free Trade Agreement between the ten nations of the ASEAN, Australia and New Zealand will be worked out in December, along with some small issues which still remain.

The ASEAN states consist of Vietnam, Thailand, Singapore, Philippines, Myanmar, Malaysia, Laos, Indonesia, Cambodia, Brunei Darussalam...

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New Tax on Staple Stock

August 29, 2008 New Zealand Taxation  No comments

Legislation on staple stock has changed, making certain instruments be regarded as equity for the purpose of tax evaluation. According to statements issued by Finance Minister Michael Cullen and Revenue Minister Peter Dunne, the changes are aimed at preventing revenue losses arising from debt issued along side to shares in a staple stock system.

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Fringe Benefit Tax Set to Rise

August 28, 2008 New Zealand Taxation  No comments

Low-interest employer provided loans are set to face Fringe Benefit Tax raises in October, announced Revenue Minister Peter Dunne.

While Fringe Benefit Tax is charged on any benefits and perks received by an employee, this tax rise will only target low-interest loans.

The decision comes as a result of regular reviews, which aim to keep the tax rate in line with the results of the Reserve Bank’s survey of first mortgage interest rates. The announced tax rise will bring the rate from its current 10.57 percent to 10.9 percent.

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Australian Superannuation Portability Allowed

August 25, 2008 International FinanceNew Zealand Finance  No comments

The New Zealand and Australian government have reached a consensus to allow the transfer of superannuation funds belonging to New Zealanders that are held by the Australian government.

The Australian government estimates that the currently hold $13 billion AUD in unclaimed superannuation funds, estimates put up to 30% of this as possibly belonging to New Zealanders who no longer reside in Australia. By current regulation there is no way to access these trans-Tasman funds until their owner is 60 years old.

The scheme allows for reciprocal action of Australian residents wishing to transfer their New Zealand superannuation funds to Australia. Under the scheme proposed by Trade Minister Phil Goff, the portability of superannuation will begin in 2009.

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