Australia Could Promp NZ Tax Decisions

July 15, 2009 International TaxationNew Zealand Taxation  No comments

Indication has been made that New Zealand could change its tax policies depending on the outcome of the Australian taxation system review.

At the New Zealand Herald’s Moods of the Boardroom meeting, on the 14th of July, Finance Minister Bill English commented on potential repercussions of the Australian Government’s taxation system review. In light of the need to stay internationally competitive in regards to personal taxation and investment, any significant change in Australia’s policies could see changes in New Zealand.

Bill English made further comment about the need to stay competitive internationally because of the ease with which business and investment can be switched between Australia and New Zealand. He added further that while many countries like the U.K. or the United States have increased their taxes, this would be something that New Zealand would avoid.