Monthly Archives January 2009
January 29, 2009 New Zealand Finance
The New Zealand Official Cash Rate has reached the lowest level since its creation.
The January 29th Official Cash Rate (OCR) announcement followed what many already thought would happen, although to a greater degree. The OCR was cut 150 basis points to the lowest level it has ever been at, reaching 3.5%.
Kiwibank and Westpac have already adjusted their one year fixed term home loan interest rates accordingly, but Reserve Bank Governor Alan Bollard urges other banks to do the same and pass the lower rates to customers. The interest rate cut had positive effects on early morning trading on the New Zealand Stock Exchange (NZX). Although falls were seen with the New Zealand dollar falling below 52 cents against the U.S. Dollar.Read More
January 28, 2009 New Zealand Taxation
Peter Dunne called the idea of a Capital Gains tax in New Zealand a “hoary old chestnut”, in a press release on the 27th of January.
In response to a New Zealand Manufacturers and Exporters Association (NZMEA) statement calling for the introduction of a Capital Gains Tax, the Minister of Revenue Peter Dunne voiced strong opposition to the idea of introducing a capital gains tax. He claimed that it would be political suicide for any government to even try and introduce it, and that it would not happen with him as Minister of Revenue. Further, the concept was labelled as draconian and backwards looking.
In this case, the Capital Gains Tax refers to gains made by selling a house, although the argument and tax implementation could extend to other investments like securities.
In his statem...Read More
January 27, 2009 New Zealand Taxation
The New Zealand Manufacturers and Exporters Association (NZMEA) is calling for implementation of a capital gains tax in New Zealand to ease the house affordability situation.
The renewed, but not original, call for a capital gains tax comes after the release of the 2009 International Housing Affordability Survey, by the website Demographia. The results of the survey place New Zealand housing as the second most unaffordable in the world. While the website pushes its own agenda and attributes this to housing and land restrictions are to blame, the NZMEA are claiming it is due to taxation issues.
The NZMEA believes that capital gains tax, which in this case would tax any profits attained from the buying and subsequent selling of a home, would encourage investors into productive investments...Read More
The possibility of a Free Trade Agreement (FTA) between Korea and New Zealand is becoming a more realistic possibility with positive signs from both Governments giving positive indicators.
The New Zealand Government has called for submissions on the possibility of a FTA with Korea,
according to Trade Minister Tim Groser in a January 23rd press release. Further, the Korean Foreign Minister, Yu Myung-hwan visited New Zealand over the subsequent weekend. Talks regarding the FTA were scheduled for Sunday.
According to Mr Goser, Korea is the sixth largest trade partner for New Zealand. He also extolled the great benefits that would be found by both countries in today’s economic environment by embracing the FTA possibility...Read More