Monthly Archives November 2014

Minimum Family Tax Credit Raised

November 19, 2014 New Zealand Taxation

Tax Credit in New ZealandLow income families will receive some extra financial support next year, as the limit on available tax credits is raised to account for inflation.

On November 17th the Inland revenue Department issued a new statement showing that on April 1st 2015 the level of the minimum family tax credit will rise next year.

Currently the minimum family tax credit is set at NZD 22 776 per year, which will be raised to NZD 23 036 next year.
The new limit on the tax credit scheme is intended to take into account the effects that inflation levels will have on the financial well-being of the families benefiting from the system.

The minimum family tax credit scheme provides low-incomes families or single parents in paid employment with a guaranteed minimum income each week, if the amount they earn each year...

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Tax System Receives Good Review From IRD

November 13, 2014 New Zealand Taxation

Tax system in New ZealandThe IRD has evaluated the New Zealand tax system, rating it as efficient and well-functioning, but has pointed out some upcoming challenges.

On November 12th the Inland Revenue Department released its Briefing for the Incoming Minister of Revenue – 2014, detailing the strengths of the current tax system in New Zealand, and describing the changes which may need to be implemented in the foreseeable future.

According to the IRD, the state of the current tax system in New Zealand is generally positive, and the current ‘broad-base, low rate’ approach to taxation is efficiently allowing tax rates to be kept as low as practical, while simultaneously making system easy to understand, administer and implement.

It was specifically noted in the Briefing that even though tax rates are being k...

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Women Pay Less Tax Then Men in New Zealand

November 11, 2014 New Zealand Taxation

Taxation in New ZealandThe financial assistance and lowered tax bills enjoyed by women in New Zealand is helping offset the income gap between men and women, according to new research.

Women in New Zealand pay less tax and receive more in benefits over the course of their lives than men, according to the results of a new study completed by researchers at the Victoria University.

The researchers indicated that women may pay less tax than men because “…partly because women more commonly stay at home than men to look after their children,” and, in addition, due to the pay gap that currently exist in New Zealand between men and women.

Women also received greater levels of assistance from the government over their lifetimes, in part due to the fact that they are more likely to be raising children, and due to t...

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Domestic Abuse Costs Millions Every Year

November 11, 2014 New Zealand Taxation

Domestic abuse costs New Zealand at least NZD 600 million in lost tax revenues every year.

Late last week the independent Glenn Inquiry issued a new statement with the results of new research on the financial cost that domestic abuse has on the country.

According to the experts of the Glenn Inquiry, domestic abuse results in a loss of NZD 7 billion each year in New Zealand, and over the next ten years the costs could keep rising, leading to a total spend of NZD 80 billion over the next decade.

At least NZD 600 million of the total costs borne by New Zealand each year is made up of ACC payments, extra-welfare payments and losses to collections of tax revenues due to domestic violence, while an extra NZD 1 billion comes in the form of lost productivity and wages, while NZD 377 million goes...

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