Monthly Archives July 2014

Calls Raised For KiwiSaver Tax Change

July 31, 2014 New Zealand Taxation

New Zealanders could retire with as much as NZD 100 000 more in their pocket, if newly suggested tax changes are made.

On June 30th the Taxpayers’ Union, the Financial Services Council, Age Concern and Consumer New Zealand launched a collaborative campaign calling on the government to reduce the tax burdens paid by New Zealanders on their long-term savings.

The campaign revolves around a call to reduce the taxes applicable on interest income from term-deposits, and from KiwiSaver funds.

According to a statement by the Taxpayers’ Union, term deposits should only be taxed on the interest rate above inflation, as growth in line with inflation should not be considered as an economic income.

The campaign also called for the “…effective tax rate paid on KiwiSaver funds to be the same as the...

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NZ First Proposes Tax Breaks

July 22, 2014 New Zealand Taxation

Targeted tax measures could help exporters in New Zealand.

On July 21st the New Zealand First party issued a transcript of a speech delivered by Winston Peters, listing several of the party’s policies in regards to supporting the national export industry, suggesting that new tax measures could be to boost the sector.

According to Winston Peters, New Zealand First will provide tax incentives to businesses to engage in research and development activities, boosting innovation in the country, and helping increase the rate of growth of exports out of New Zealand.

He added that New Zealand First believes that export businesses should enjoy a lowered corporate income tax rate of 20 percent.

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Fuel Efficient Cars Cause Tax Hike

July 2, 2014 New Zealand Taxation

RoadworksFuel efficient cars are one of the reasons behind the government’s recent hike to petrol taxes.

In a statement made on June 30th the Prime Minister John Key indicated that improvements in the fuel efficiency of cars has led to the government raising the taxes applicable to the sale of petrol in New Zealand.

According to the Prime Minister, while tax rates applicable to the sale of petrol have been rising in recent years, the total tax revenues collected from the sale of petrol has been falling, as newer and more efficient cars require less fuel to operate.

The impact of the falling tax revenues is made even more sever by the fact that the government’s demand for the funds is growing larger, due to its ongoing roading projects and infrastructure improvements.

John Key conceded that the ...

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