Tax Policy Update from Speech

May 20, 2009 New Zealand Taxation  No comments

Revenue Minister Peter Dunne gave a speech on the 15th of May, updating the government’s tax policies.

Revenue Minister Peter Dunne gave a speech to the New Zealand Institute of Chartered Accountants in Masterton. He addressed the current state of the economy as an opening for his update of the government’s current tax policy plans.

Peter Dunne restated his plans to instate a 30% tax alignment policy between company, top personal and trustee tax. Although he did say that this currently limited to a medium term plan on account of the Government’s financial position, unless an unexpected and large financial turnabout occurs.
He mentioned the Income splitting bill, which is scheduled to be introduced in 2010. This will effectively allow families with children to split their income for taxation purposes.

Mention was made of charitable giving and its importance to the revenue Minister. He alluded to their being further taxation incentive options available to him to encourage charitable giving, but did not reveal specifics.

The idea of modernising the Inland Revenue administrative system was also voiced, to increase efficiency. Similarly, the idea of increasing efficiency in the management of student loans was raised.