Monthly Archives January 2012

New Zealand OCR Remains Unchaged, Again

January 27, 2012 New Zealand Finance

New Zealand Official Cash RateThe Official Cash Rate of New Zealand will remain unchanged, as national and international economic conditions do not yet justify an increase.

On January 26th the Governor of the Reserve Bank Alan Bollard announced that the Official Cash Rate (OCR) of New Zealand will be maintained at 2.5 percent.

Allan Bollard explained that since December, financial stability around the world has seen a slight improvement, but was still too fragile to justify raising the OCR. He added that given the moderate pace of the international market and the subdued domestic consumer demand levels, it remains prudent to maintain the OCR at the currently low level.

While detailing the national economic situation, the Governor noted that the New Zealand economy has seen some pick up over the last few months, and in...

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Year in Prison for Tauranga Tax Fraud

January 25, 2012 New Zealand Taxation

Calculating Taxes Up And DownA Tauranga man has been sentenced to a year in jail for neglecting his business’ tax obligations, and using employee tax payments to fund his own expenses and recreation.

Last week the Tauranga District Court sentenced an Adrian Ace, an agricultural contractor, to twelve months in prison for evading his PAYE and GST tax obligations. Adrian plead guilty to 28 charges of failing to properly account for PAYE for the employees at his company Pride Contracting Limited. He had also pleaded guilty to three charges of evading GST. Cumulatively, the company owed approximately NZD 55 000 to the Inland Revenue Department.

According to the IRD’s investigations manager Jonathan Matthews, Adrian Ace was first contacted by the IRD regarding his company in August 2005, when a repayment plan was establi...

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NZ Housing is Overpriced

January 23, 2012 New Zealand Finance

Housing prices in New ZealandHousing in New Zealand is severely unaffordable, with property prices being up to 6.4 times higher than the average salary.

On January 23rd Demographia, an international think-tank, released the latest edition of the annual “Demographia International Housing Affordability Ratings” report, containing an analysis of housing affordability around the world.

The study compared the median house prices in a given market area with the median household income levels in the same region. According to the published results, housing prices in New Zealand are severely unaffordable, and Auckland is the least affordable region, with the average house price being approximately 6.4 times higher than the average pre-tax salary...

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New Zealand Inflation Drops in Q4

January 20, 2012 New Zealand Finance

Consumer Price Index New ZealandThe latest static indicator for New Zealand inflation has been published, showing that prices throughout New Zealand only went up by 1.8 percent last year.

On January 19th Statistics New Zealand released the latest national Consumer Price Index (CPI) for the December quarter of 2011.

The new information showed that during the last three month of the year the CPI fell by 0.3 percent. The drop was largely contributed to a 25 percent decrease in the price of vegetables over the 4th quarter of 2011. Also, telecommunications services saw a significant 3.6 percent decrease in prices in the last quarter of 2011, and the cost of purchasing new household contents and services fell by 1.5 percent...

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