NZ Tax Freedom Day on May 17
April 22, 2010 New Zealand Finance
New Zealand’s Tax Freedom Day (TFD) has been calculated to fall on May 17th in 2010.
On April 22th the accounting firm Staples Rodway released research revealing the country’s TFD for 2010 to be May 17th, one day earlier than in 2009. The TFD is a conceptual measure of the day on which a country as a whole has worked enough to satisfy its annual Government tax obligation. It has refer to as the day that New Zealanders stop working for the Government and begin working for themselves.
According to Staples Rodway, 2010 will be the first year in which New Zealand’s TFD falls later than Australia’s, the UK’s and the US’s. In 2009, Australia’s TFD fell on April 29th, while it was April 11th and May 11th for the US and UK respectively. Roger Thompson, Managing Director of Staples Rodway Auckland, commented on the results, saying that the large gap between Australia’s and New Zealand’s TFD should be of the most concern to New Zealanders. He commented further on the gap, explaining it by saying that the Australian Government has instated a new round of tax cuts which are supported by low unemployment levels and a strong economy. Specifically he claimed that Australia’s early TFD is more sustainable and better than the US’s, the UK’s and New Zealand’s. He went on to say, “While the outlook for New Zealand is positive, this gap with Australia shows no signs of closing.”
Photo by Chris Gin