NZ Budget Released

May 28, 2009 New Zealand FinanceNew Zealand Taxation  No comments

New Zealand Prime Minister John key delivered the new Budget, no great surprises were present.

The new Government’s first Budget has been released amongst poor economic conditions and threats of credit rating downgrades. No particular surprises were featured, that have not been circulating over the previous weeks.

The promised personal tax cuts for 2010 and 2011 have been deferred, with no set date. To some analyst this has suggested these cuts be in perpetual deference, as John Key has talked of working to build a government surplus over the coming 5 years.

The Kiwisaver mortgage diversion facility has also been withdrawn due to its compliance cost and participation numbers of only 600.

Automatic contributions to the New Zealand Superannuation Fund have been suspended, with future payments being decided upon on a year by year basis.

The Health Sector will receive a further $3 billion. Education will $1.3 billion extra. Broadband infrastructure has $290 million of its $1.5 billion required set aside. State Highways maintenance has received $1 billion over the next three years.

Home insulation will receive an upgrade with 180,000 homes being eligible for a $1,800 grant towards insulation and heating. This grant can be expanded to $3,000 for Community Service Card Holders.