Monthly Archives November 2011

Key and Goff Square Off on Economy

November 3, 2011 New Zealand Finance

John KeyAs the country nears the November 26th election date the leaders of the National and Labour Party ramp up debates over the issues of the economy and taxation.

At the Press 2011 election leaders’ debate in Christchurch on November 2nd National Leader John Key and Labour Leader Phil Goff went toe to toe over their respective promises for the New Zealand economy.

The leaders first debated issues surrounding the rebuilding of the earthquake stricken Canterbury region. Phil Goff criticized the current Prime Minister for backtracking on claims made regarding payouts to taxpayers whose homes were damaged in the Christchurch earthquake. John Key responded by saying that payouts are a balancing act between the needs of effected individuals and the rest of New Zealand’s taxpayers.

A significan...

Read More

National Reveals Welfare Reforms

November 2, 2011 New Zealand Finance

New Welfare Rules Announced by John KeyThe National party is looking to make significant changes to the country’s welfare system, with new rules to require benefit recipients to look for work.

At a press conference in Hamilton on October 1st the New Zealand Prime Minister John Key revealed the National Party’s plans for a revised welfare system.

According to the Prime Minister, the welfare system changes are aimed at breaking the cycle of “inter-generational” welfare dependence and long-term welfare recipients. Ultimately, the Party hopes to cut NZD 1 billion from national welfare expenditure over the next four years, by encouraging approximately 46 000 extra taxpayers to reenter the workforce.

John Key proposed that the current welfare system be dropped entirely and replaced with a new scheme, consisting of three primar...

Read More

Hobbits Enjoy Millions in Tax Credits

November 1, 2011 New Zealand Taxation

Hobbit HoleThe current production of the “Hobbit” movies is receiving millions in tax credits for filming in New Zealand.

According to a statement released last week by 3 Foot 7, a production company behind the Hobbit films, the movie received approximately NZD 20.2 million in tax rebates in its first year of production. The company has so far seen a NZD 70.9 million revenue, which comprised mainly of fees from New Line Productions, a subsidiary of Warner Bros Entertainment.

Under current New Zealand regulations, a movie production with an annual qualifying New Zealand production expenditure exceeding NZD 15 million is eligible for a 15 percent tax credit. Further grants can be available for movies with large budgets for post production digital effects and processing...

Read More