PM clarifies tax changes

PM clarifies tax changes

PM clarifies tax changes

Posted by Peter in Tax, 9 February 2010
Tagged with: Tax

In his Statement to Parliament today, Prime Minister John Key clarified the Government's plans for tax reform. Here are the main points:

Property tax
The Government "will not be developing any proposals for a land tax, a comprehensive capital gains tax, or a risk-free return method (RFRM) for taxing residential investment properties."

However, the Government "will be making changes to the way property is taxed which will result in increased Government revenue and more fairness for taxpayers."

These changes will be announced in the Budget on Thursday 20 May.

GST
The Government is "carefully considering a modest increase in the rate of GST, to no more than 15 percent."

Any increase would be accompanied by "across-the board reductions in personal taxes, as well as up-front increases in benefits, New Zealand Superannuation, and Working for Families payments."

However, "no decisions have yet been made about raising GST and the Government has asked for more work to be done on this."

Working for Families
The Government is “not considering any major changes to the Working for Families scheme."

You can download a full copy of John Key's Statement to Parliament from the Beehive website.

Glossary: risk
An investment is normally considered to be risky if there is a reasonable chance that its value will vary significantly in the future. For example, an investment in shares is more risky than an investment in a bank term deposit. The value of shares may fall below the price paid for them while the value of bank deposits generally do not. High risk investments should only be taken on with long term intentions. You would expect a high long-term return to compensate for high risk.
Glossary: investment
A way to use your money to make it grow.
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Last post by Dan11111 at 01:52 pm on February 19, 2010

Calculator

Hey how about making a calculator for sorted.org.nz which will show the potential savings on the assumed tax cuts and your salary?

Dan11111 User comment Posted at 01:52 pm on February 19, 2010

Low Income

I understand the feelings of Low Income people. But what disappoints me is the absence of any intention or desire to improve their position. There is a deep entitlement / welfare culture in NZ and it is debilitating. I come from a very poor family. I had to work very hard to get where I am today, financially and personally. If you are able bodied, sound of mind and otherwise healthy - you have no excuse. Lets do what we can to support those in our community to get ahead in life. Everyone has a duty to improve their lot in life, and to make tomorrow better for those who will inherit this world when we die.

People who are genuinely disadvantaged through poor health or body deserve to be supported by the state. We are a compassionate country.

But we have become a country that panders too much to the whims of those who lack the drive and desire to improve themselves.

The essence of self determination is to determine your lot in this life. Its an attitude. Kia Kaha Koutou.

Rt User comment Posted at 12:39 am on February 16, 2010

Low Income

The disparity between rural and city wages is getting ridiculous.
After burning out in a big city govt career after 25 yrs, being middle aged and living on minimum wage in small town NZ is so bad. No one wants over 50's and moving back to the city is not an option. I now have the utmost respect for beneficiaries being so close to a third redundancy. I've never taken a hand out yet but for goodness sake realise that their are decent hard working ppl struggling on nothing, never get a holiday and get bombarded by the line "we can't pay more and if the govt put up the minimum wage you'll be out of a job" Tolpuddle folk had it easy, roof, job,and fed for life and a 40 hour week... what luxury!!

Dan M User comment Posted at 10:05 am on February 12, 2010
 
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