Monthly Archives March 2012

New Zealand GDP Up in Q4 2011

March 23, 2012 New Zealand Finance

Waikato Heads, Waikato, North Island, New ZealandThe level of economic activity seen in New Zealand’s over the last year increased, but not by as much as the government had forecast.

On March 22nd Statistics New Zealand released the latest quarterly report on the Gross Domestic Product (GDP) of New Zealand, which showed mild levels of economic growth throughout 2011.

According to Statistics New Zealand, the national GDP level rose by 1.4 percent over the year ended December 2011, and the level of economic activity in New Zealand grew by 0.3 percent during the December quarter of 2011. Analysis completed by Statistics New Zealand also indicates that the level of economic activity during the quarter was nearly 1.8 percent higher compared to the same period in 2010.

The newly released report shows that the agriculture industry experience...

Read More

IRD Pushes For Greater Student Loan Compliance

March 22, 2012 New Zealand Taxation

Student loan holders encouraged to payThe IRD is set to increase its efforts to boost the repayment of student loans held by borrowers now living overseas, and to encourage more people to make voluntary repayments.

Recent research released by the Inland Revenue Department shows that as at the start of the year, the cumulative balance of all student loans held by borrowers who are now overseas is at NZD 2.5 billion, with nearly NZD 312 million of further payments currently in arrears.

According to the the Department, efforts will be carried out throughout this year to increase the compliance rates amongst student loan holders who are based overseas. As part of its push, the IRD will contact borrowers directly or through their nominated contact person to remind them of their repayment obligations...

Read More

No Tax Cuts on the Horizon

March 20, 2012 New Zealand Taxation

AucklandNew Zealand will not see cuts to personal income taxes, corporate income taxes or GST in the near future, according to the secretary of the New Zealand Treasury.

While delivering a speech at a conference of the International Fiscal Association in Queenstown on March 17th, the secretary of the Treasury of New Zealand Gabriel Makhlouf described the current state of the national tax system and also discussed potential changes which could be implemented in the future.

The Secretary suggested that, ideally, New Zealand should align the top tax rates for personal incomes and corporate incomes. He said that the current 5 percent difference in the rates is acceptable, but the gap should not be allowed to widen any further.

Gabriel Makhlouf also noted that the rate of corporate taxes in New Zealand...

Read More

IRD to Tighten Rules on Student Loans

March 16, 2012 New Zealand Finance

Student Loan Rules Tightening for GraduatesThe Student Loan scheme is set to change, with stricter rules being implemented on borrowers, especially those who travel overseas for extend periods of time.

On March 13th Parliament received a report from the New Zealand Finance and Expenditure Committee on the upcoming Student Loan Scheme Amendment Bill. The newly published report contains a summary of the major changes that will be implemented in the bill, along with responses to public submissions that were made regarding the national student loan scheme and potential changes to the system.

According to the report, one of the biggest changes brought in by the new bill will be the exclusion of loses from the calculation of incomes for student loan repayments, which will increase personal responsibility for debt repayment and maximize ...

Read More