NZMEA tagged posts

NZMEA Calls for Capital Gains Tax

January 27, 2009 New Zealand Taxation  No comments

The New Zealand Manufacturers and Exporters Association (NZMEA) is calling for implementation of a capital gains tax in New Zealand to ease the house affordability situation.

The renewed, but not original, call for a capital gains tax comes after the release of the 2009 International Housing Affordability Survey, by the website Demographia. The results of the survey place New Zealand housing as the second most unaffordable in the world. While the website pushes its own agenda and attributes this to housing and land restrictions are to blame, the NZMEA are claiming it is due to taxation issues.

The NZMEA believes that capital gains tax, which in this case would tax any profits attained from the buying and subsequent selling of a home, would encourage investors into productive investments...

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OCR Predictions Lower

December 1, 2008 New Zealand Finance  No comments

Closer to the December Official Cash Rate (OCR) decision a progressively larger number of analysts are predicting a dramatic drop.

While argument may arise around exactly how much Reserve Bank Governor Alan Bollard will cut the OCR, no analysts are willing to vouch for any figure lower than 100 basis points, bringing the OCR to at least 5.5%.

Predictions for the December OCR cut range realistically between 100 to 200 basis points, with supporters on either side of the spectrum.

The biggest supporter of a 100 point cut amongst chief New Zealand analysts is Westpac Trust. In a statement released by Westpac Trust, they place their estimate on the lowering commodity prices of today’s market, the falling price of oil, lowered mortgage rates and the oncoming National Tax cuts...

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