Monthly Archives June 2010

Benefit Numbers Below Projections

June 15, 2010 New Zealand Finance

Latest Government figures show that the number of New Zealanders receiving a Government benefit is below previous projections.

On June 14th the New Zealand Government revealed that despite increasing by 0.6 percent during the month of May, the number of benefit receivers in the country is still below forecasts. According to Paula Bennett, Social Development Minister of New Zealand, stated that total benefit numbers increased by 1 887 in May, although 7 121 individuals previously on the found employment in the same period.

Paula Bennett elaborated on the figures, saying that the increase consisted of 729 extra people receiving the sickness benefit, 342 extra individuals receiving the Dependant Parent Benefit, and 391 who now receive the Unemployment Benefit...

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Government Intends to Repeal Gift Duty Tax

June 11, 2010 New Zealand Taxation

United Future AnnouncementThe Government of New Zealand is investigating the possibility of repealing gift duty taxes, as the levies provide too little revenue for their inherent administration costs.

On June 10th Peter Dunne, Revenue Minister of New Zealand, released a statement revealing the Government’s intentions of abolishing Gift Duty Taxes. According to Peter Dunne, the Government has been investigating the issue for several months and “a strong case has emerged” for the complete repealing of the Gift Duty Tax rules.

According to Peter Dunne’s statement, Gift Duty was initially introduced to prevent individuals circumventing Estate Duty taxes. Estate Duties were subsequently abolished in 1992, although Gift Duty Taxes were retained...

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New Zealand OCR Raised to 2.75%

June 10, 2010 New Zealand Finance

The treasury cash register is brokenThe Reserve Bank of New Zealand has raised the nation’s Official Cash Rate (OCR) to 2.75 percent.

On June 10th the Reserve bank of New Zealand (RBNZ) announced the first change in New Zealand’s OCR since April 30th 2009. At the latest OCR review, the rate was increased by 0.25 percent to a new level of 2.75 percent. The rate has remained unchanged for the last 8 OCR review sessions.

Alan Bollard, Governor of the RBNZ, explained the change, saying, “…the economy has entered its second year of recovery with growth becoming more broad-based.” The alteration has also been attributed to the strong recovery of the New Zealand’s key economic trading partners, especially the Asia region, Australia, and the US...

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Tourist GST Exemption Called For

June 6, 2010 International TaxationNew Zealand Taxation

Extremely Loud and Incredibly CloseIndependent business groups are calling for the New Zealand Government to institute a new Goods and Service Tax (GST) exemption system for visiting overseas-residents.

On June 5th Cameron Brewer, CEO of the Newmarket Business Association, issued a statement supporting Ann Lockhart, CEO of the Queenstown Chamber of Commerce, who on the same day called for a revised GST-exemption program to be instituted for foreign visitors. Under the proposal, overseas nationals could present their purchase invoices at a New Zealand international airport and be granted an exemption on any GST paid on purchases throughout their visit.

The comments were sparked by a speech given by Bill English, Finance Minister of New Zealand, in which he refuted the possibility of a GST-exemption system being created in th...

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