Monthly Archives February 2011

NZ to Cut Spending and Borrowing

February 10, 2011 New Zealand FinanceNew Zealand Taxation

Rugby - Webb Ellis Cup Coin Launch, 9 September 2010The Prime Minister has given a speech revealing the government’s focus for the upcoming budget, which will have a large emphasis on reducing government borrowing and working towards a budgetary surplus.

On February 9th Prime Minister John Key gave his Statement to Parliament 2011, the first speech given by the Prime Minister to the Parliament for the 2011 year. In the speech John Key revealed that the upcoming national budget will be released on May 19th.

The Prime Minister stated that in the coming year, the government will focus on reducing government spending, increasing the level of national savings and reducing the country’s reliability on overseas debt. He stated that the government will reduce its borrowing below previously forecasted levels...

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Business Owners Support Tax Simplification

February 9, 2011 New Zealand Taxation

tax_2960New Zealand business owners would support a political party which promises to simplify and innovate tax-filing rules and systems, and nearly half of business owners wish to see a common economic zone between New Zealand and Australian.

On February 9th the accounting software firm MYOB Technology released the quarterly MYOB Business Monitor report, which canvases opinions of New Zealand businesses on taxation and the economy. The newly published edition of the report gauges local businesses’ views on potential election year political campaign promises.

Overwhelmingly, the report showed that business owners would support a political party which campaigned on the promise of reducing tax compliance costs for businesses, or introducing measures to ease filing burdens...

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New Zealand’s Overseas Debt is Too High, Change Needed

February 4, 2011 New Zealand Finance

MoneyThe Savings Working Group has released its final report, outlining several measures to increase the country’s savings level.

On the February 1st the government appointed Savings Working Group (SWG) released its long awaited final report, with suggestions on reducing New Zealand’s overall reliance on overseas debt. According to research within the report, the country’s net foreign liability currently stands at 85 percent of the GDP. Comparatively, Australia is only at a level of 58 percent. The comparatively large liabilities level means that New Zealand is particularly vulnerable to large overseas financial movements. According to the SWG, urgent action is needed to address the situation.

The report recommends that the national savings level should increase to 3 percent of the GDP, a...

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Green Party Weighs in On Tax Debates

February 2, 2011 New Zealand Taxation

HDR version of The New Zealand Green Party has kicked of its election year campaign by publicizing its initial set of taxation policies for New Zealand, promising a capital gains tax and a environmentally focused economy.

The New Zealand Green Party co-leader Dr Russel Norman gave the annual State of the Planet speech on January 30th, in preparation for this year’s upcoming general election campaigns. The speech centered on the Green Party’s policy outlooks and election promises for the year, which deviated from the expected climate based policy proposals to arguments concentrated on the future of the economy.

Dr Russel Norman claimed that the Green party’s new focus is best described as “Smart Green economics”, and is consistent with elements of Keynesian economics and elements of free market econom...

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