Government tagged posts

Student Loan Feedback Sought

July 2, 2009 New Zealand FinanceNew Zealand Taxation  No comments

The Government is seeking feedback from student loan holders in regards to changes to the Student Loans system.

In an effort to increase the ease with which student loan borrowers can access information in regards to their loans, and subsequently improve payment, the Government has proposed a number of changes to the Student Loan system.

The proposed changes are outlined in a discussion document published by the government. The comments are to be submitted via an online forum, and unlike typical submissions are expected to be informal comments by current borrowers.

Proposed changes include the removal of the traditional end of year annual assessment and migrating to a pay-period system, whereby student loans are paid depending on the earners pay period (be it weekly, fortnightly or month...

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Views on PDP Change Called For

June 25, 2009 New Zealand Taxation  No comments

The Government has released a document detailing the proposed changes to profit distribution plans, and are calling for public comment.

As announced on the 16th of April, the Government is looking to implement new legislation in regards to Profit Distribution Plans (PDP). Specifically it aimed to deal with the situation under PDP schemes where shares which are given to shareholders by a company are immediately sold back to the company, which not currently covered by tax legislation.

The Government is seeking feed back on the new legislative paper, but with greater eagerness towards the technical aspects of the law change.

The proposal paper can be viewed on the Inland Revenue Department’s Tax Policy website, here.

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Chance of NZ Credit Downgrade Slim

May 25, 2009 New Zealand FinanceNew Zealand Taxation  No comments

New Zealand Prime Minister John Key has said that he does not expect New Zealand’s credit to be downgraded after the release of the May 28th Budget.

Despite warnings earlier this year by credit rating agency Standard & Poor, John Key believes that New Zealand government has changed its economic track enough to ensure that no credit downgrade will occur.

As an indicator of economic stability and certainty, the credit rating has a direct effect in the cost of financing that New Zealand will face. It is therefore in the interest of all New Zealanders that the rating not drops. John Key said, in an interview on TV One show “Breakfast” that such a downgrade would see roughly 2% in interest rates.

John Key has stated previously that the new budget would be a slimmer one then seen previousl...

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Tax Policy Update from Speech

May 20, 2009 New Zealand Taxation  No comments

Revenue Minister Peter Dunne gave a speech on the 15th of May, updating the government’s tax policies.

Revenue Minister Peter Dunne gave a speech to the New Zealand Institute of Chartered Accountants in Masterton. He addressed the current state of the economy as an opening for his update of the government’s current tax policy plans.

Peter Dunne restated his plans to instate a 30% tax alignment policy between company, top personal and trustee tax. Although he did say that this currently limited to a medium term plan on account of the Government’s financial position, unless an unexpected and large financial turnabout occurs.
He mentioned the Income splitting bill, which is scheduled to be introduced in 2010...

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