Monthly Archives April 2011
April 29, 2011 New Zealand Finance
According to the Reserve Bank of New Zealand, following the Christchurch earthquake and in the face of an overvalued currency and rising oil prices, New Zealand remains in a precarious economic position.Read More
During the latest Official Cash Rate (OCR) review on April 28th, the Reserve Bank noted that following the recent natural disaster in Christchurch consumer spending in New Zealand and inbound international tourism took a deep dive. The OCR was cut down to 2.5 percent in response, as a means of buffering against the negative effects. To date, there have not been enough signs of strong recovery to warrant an increase to the OCR, leaving at the 2.5 percent level.
During the media conference announcing that no changes will be carried out to the OCR, Reserve Bank Governor Alan Bollard, suggest...
April 28, 2011 New Zealand Taxation
New Zealanders invest too much in the property market, leading to an imbalance in the capital market and an over-reliance on foreign debt.
According to the latest Economic Survey of New Zealand released by the Organization of Economic Cooperation and Development (OECD) on April 27th, the government needs to instate a comprehensive capital gains tax into the tax system, in order to address inefficiencies and imbalances in the economy.
The report suggested that for the last ten years New Zealanders have relied on easily accessible credit to invest in the housing sector, as the tax system contained strong bias to property as an investment vehicle...Read More
April 27, 2011 New Zealand Taxation
The government is attempting to ease the financial burdens felt by motorists, by delaying the upcoming increase to petrol sales. However, some are labeling the move as being purely politically motivated.
Amidst the skyrocketing fuel prices faced by New Zealanders, the government has stepped forward an announced that the petrol tax increase that was scheduled for June will be deferred for a year. The move was announced by Transport Minister Steven Joyce, in a press conference in Wellington on April 26th.
The government had planned to instate a 1.5 cents per liter increase to petrol taxes in June 2011. This will now be delayed, in favor of two increases spread out across 2012 and 2013. In total, the next two increases will bring petrol taxes up by 3.5 cents per liter...Read More
April 20, 2011 New Zealand Taxation
With the ever increasing level of student loans outstanding in New Zealand, the Inland Revenue Department is setting off on a effort to ensure the payment of debts by borrowers now based overseas, hoping to raise a portion of the funds needed to rebuild Christchurch.
As of December last year, the number of New Zealanders with student loans who have are now overseas has reached 88 000. Cumulatively the borrowers face a combined debt of NZD 2.3 billion, totaling over 20 percent of the country’s student loans. As of early 2011, nearly NZD 200 million of the debts were overdue for repayment, with an approximate 35 000 borrowers being behind on their obligations.
On April 18th the Inland Revenue Department (IRD) Deputy Commissioner Service Delivery Carolyn Tremain said that the Department wou...Read More