Monthly Archives January 2009

Tax Cuts Lead to MP Salary Falls

January 22, 2009 New Zealand FinanceNew Zealand Taxation  No comments

New Zealand Prime Minister seems concerned by the level of government spending amidst a recession and raised expenditure on planned tax cuts. He claimed that the government should not raise salaries of its Ministers of Parliament and other governmental positions.

The move to counter the effects of the tax cut inflicted deficit on the Government budget will be made in the form of a suggestion by the National Party to the Remuneration Authority.

Ironically John Key’s wealth has been valued at over NZD$50 million. His current Prime Minister salary is at $393,000. He is reputed to donate a significant portion of this to charity.

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Kiwi Hit 6 Year Low on Momentous Day

January 21, 2009 International FinanceNew Zealand Finance  No comments

The Inauguration of Barack Obama, release of 2008 inflation figures and a losing day on Wall St saw the New Zealand Dollar hit a 6 year low against the U.S. Dollar (greenback).

The New Zealand Dollar (Kiwi) reached a value of US51.65 cents.Further, the Kiwi reached a seven year low of 46.98 against the Japanese Yen.

The falls came amidst similar moves from many world currencies. On a global scale this can be attributed to the speech of Barack Obama, which did not reveal any new details regarding the U.S. Economic recovery package. The lowest points for the Kiwi against both the Yen and Greenback came near the closing of the Presidential Speech.

The fall of the Kiwi can also be attributed to the low sales economic figures for the month of December...

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Crime Tax Proposed

January 20, 2009 New Zealand Taxation  No comments

The Government has proposed a $50 tax to be enforced upon anyone who commits a crime.

The national-led Government is set to bring forward for discussion a new tax which will be levied on anyone coming to court and being charged with a crime. The new tax will be charged regardless of seriousness of offence, extending from murder to traffic offences.

The collected $50 is aimed at repaying victims of crimes. It will be collected alongside other court fees and is reputed to hold very little extra administrative cost with it. It is expected to garner $5 million per year.

Those opposing the tax claim that in some cases the cost of collecting the fee will surpass the final $50. Deputy Leader of the Opposition, Annette King has said that this move is a “piece of pure political theater’...

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Tax Reform Might See More Expensive Wine

January 19, 2009 International Taxation  No comments

Australian wine makers are calling for the current tax rebate they receive to be untouched in the face of possible alcoholic beverage tax reform.

The way alcoholic beverages are taxed in Australia is currently under review by the Australian Treasury’s Secretary Ken Henry. The primary goal of the review is to investigate the possibility of simplifying and streamlining the way alcohol is taxed. As it stands, various types of alcohol all experience different taxes and rebates, a system that is claimed to be complex.

One aspect of the current situation is the Wine Equalization Tax (WET) which, since its introduction in 2004, has given small and medium sized winemakers a tax rebate of 29%. Some claim this system to be unfair and biased towards wine.

The abolition of the WET system will undoub...

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