Parliament tagged posts
February 10, 2010 New Zealand Taxation
Putting an end to months of waiting, Prime Minister John Key made his first statement to the Parliament, on February 9th, outlining the Government’s intentions for the tax system, economic growth, along with making the long awaited response to the Tax Working Group Report.
With the countries recent focus on the tax system and possible reforms, John Key initiated his speech by disclosing the Government’s plans for the taxation landscape. He indicated that investigations are currently being held around the feasibility of implementing a raised Goods and Service Tax (GST) rate of up to 15 percent, from the current 12.5 percent. It was revealed that there could be a lowering at all levels of personal tax rates, with particular emphasis on top-earners...Read More
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has passed through the final stages of New Zealand Parliament.
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill was first introduced to parliament in March, 2008. It was intended to be a far reaching Bill, encompassing and amending many areas.
Peter Dunne, Revenue Minister, stated in regards to the bill “The reforms are aimed variously at reducing tax costs for businesses, bringing tax law up to date with today’s commercial environment, protecting our revenue base, ensuring the law works as effectively as possible, or supporting a culture of charitable giving in New Zealand.”
Changes include amendments that ensure that insurance providers are taxed on profits in comparable way...Read More
April 1, 2009 New Zealand Taxation
The National promised tax cuts came into effect on the 1st of April, 2009.
As of the first of April, 2009, a number of changes are taking place in the New Zealand taxation system both in regards to business and personal taxation.
To the everyday individual, most noticeable amongst these will be the introduction of the Independent Earners Tax Credit, which will deliver a net $520 ($10 per week) to those earning between $24,000 and $44,000. This decrease at 13 cents per dollar above the $44,000 bracket. Also, the 33% marginal taxation bracket begins from $48,000. The above $70,000 earnings bracket tax is decreased from 39% to 38%.
Changes also come into effect for small and medium enterprises. Provisional tax estimation uplifts are now removed...Read More
The Government is looking to implement changes to the KiwiSaver scheme, specifically targeting inequality between high and low income earners.
To help finance its tax cut policy, the National party planned to implement changes to Kiwisaver contribution rules. Specifically, the required contribution one would have to make would be cut from 4% to 2%, while the Government matched amount would still be capped at $20.
Amongst low income earners this led to criticism as those earning below $52,000 would not be able be eligible to receive the government’s full $1,040 contribution. Subsequently the end result for low income earners would be a much lower total savings amount in their KiwiSaver account.
Solutions to this inequality are being debated in Parliament this week...Read More