Monthly Archives May 2012
May 30, 2012 New Zealand Taxation
On May 28th President of the New Zealand Union of Students’ Associations Pete Hodkinson issued a statement, claiming that the current National-led government is reducing its support of students in New Zealand ” … so it can pay for its tax cuts for the rich”.
According to Pete Hodkinson the government has shifted its focus away from students and towards high earning individuals, and the move is short sighted and will prove to be harmful to New Zealand.
The government has abducted that over the next year, the parental income threshold for student allowances would be frozen, and the student loan repayment threshold will be held at NZD 19 084 until 2015.
Pete Hodkinson claims that leaving the threshold at its current level will mean that an extra 1 500 New Zealand students will no longer be el...Read More
May 22, 2012 New Zealand Finance
The government should consider borrowing money from private investors in New Zealand, instead of selling state owned assets.
On May 21st the economic consultancy firm BERL released a new report, commissioned by the Green Party, detailing the potential economic effects of the government’s proposed asset sale program.
The report claimed that selling off state owned enterprises would permanently damage the financial situation of New Zealand, suggesting that it would cause a “…permanent deterioration in the external deficit and the level of external debt”.
Ganesh Nana, author of the report and economist at BERL, explained that selling assets would immediately reduce the government’s revenue streams, due to the decrease in the collections of dividend payments...Read More
Australia’s recent hike to the rate of departure tax could reduce the number of Australian tourists coming to New Zealand, and the New Zealand tourism industry is calling for political assistance on the issue.
On May 1th the Tourism Industry Association New Zealand (TIA) called on Prime Minister John Key voice his concerns to the Prime Minister of Australia Julian Gillard regarding the recent increase to Australia’s high level of departure tax and its potential negative effect on the number of Australian tourist coming to New Zealand.
Last week the Australian government announced that from July 1st the departure tax charged on anyone leaving Australia would be raised from AUD 60 per person to AUD 55 per person, equivalent to a 17 percent hike.
The TIA is concerned that the increase will h...Read More
May 11, 2012 New Zealand Finance
Future discussions regarding income inequality in New Zealand need to consider income mobility over time in order to better target economic policies.
On May 9th the University of Otago published new research which was commissioned by the Treasury of New Zealand in order to attain greater information on income movements across different demographics in the country. The authors of the research examined data collected in Statistics New Zealand’s annual Survey of Family, Income and Employment, to determine how the incomes of New Zealanders changed over the period between 2002 and 2009.
The research indicates that over the time period New Zealanders saw significant mobility in their incomes, both in terms of upward and downward movements...Read More