Monthly Archives June 2010

GST Rise May Lead to Disproportionate Costing

June 28, 2010 New Zealand FinanceNew Zealand Taxation

24-02-2005New Zealand’s upcoming GST rate increase could result in the prices of items rising by more than the prescribed amount, with retailers potentially using the time to charge extra.

Over the weekend several researchers and retailers in New Zealand claimed that the upcoming GST rate increase would be used by some sellers to increase their prices above the prescribed rate. According to John Albertson, Chief Executive of the Retail Association, claimed that some retailers might attempt to round-up their prices after the increase, capitalizing on any confusion shoppers might have. As an example he pointed to an item which would ordinarily be priced at NZD 9.99, after the October 1st increase the price should be NZD 10.21. He claimed that it is conceivable that this will be rounded to NZD 10...

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CoinsThe New Zealand current account deficit has reached its lowest level in twenty years, in the year to March.

On June 23rd Statistics New Zealand released the latest current account deficit figures, revealing a decrease in the country’s current account deficit. For the year ended March 2010 the current account deficit was NZD 4.5 billion, compared to NZD 14.6 billion for the same period a year ago. The latest figure translates to 2.4 percent of the national GDP, the lowest recorded level since September 1989. The adjusted deficit for the quarter to March 2010 was NZD 1.6 billion.

The improvement in the current account was attributed to an increase in the price of export goods...

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New Zealand GDP Grows 0.6 Percent

June 24, 2010 New Zealand Finance

IMG_9342The New Zealand Government has reported a fourth quarter of Gross Domestic Product (GDP) growth for the economy, but emphases the need to ensure sustainability.

On June 24th the New Zealand Government released a statement announcing a GDP growth figure of 0.6 percent for the March quarter. Additionally, the Government revised its growth estimates for the December quarter, from 0.8 percent to 0.9 percent. Bill English, Finance Minister of New Zealand, commented on the economic results, saying, “The continuing recovery is good news. A growing economy is the only way to create new jobs and raise New Zealanders’ living standards.”

The growth was reportedly led by an outstanding rebound and expansion of the manufacturing industry...

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GST Advisory Panel Launched

June 21, 2010 New Zealand Taxation

United Future AnnouncementThe New Zealand Government has launched a Goods and Service Tax (GST) advisory panel, to help businesses transition to an increased tax rate on October 1st.

On June 21st the New Zealand Inland Revenue Department (IRD) announced the launch of the GST Advisory Panel. According to Peter Dunne, New Zealand Revenue Minister, the panel was created to aid the GST-rate transition for the generation of businesses who have not have not yet faced a sales tax increase.

Peter Dunne explained that the Advisory Panel will act as an intermediary for the IRD and the national business community. The Panel will communicate in both directions by attempting to clarify ambiguities for the business community, while possibly suggesting legislative amendments to the IRD...

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