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This 2017 Budget Report has been prepared with the assistance of specialist practitioners from Bell Gully and EY. It covers announcements of interest to tax practitioners and the business community.
Family income and tax rates Ministerial statement It is now seven years since we last altered the income tax system. Over that time the average wage has risen from $49,500 to $58,900. That’s good news. But because of that change many more middle income earners are faced with a marginal tax rate of 30 per […]
Read MoreBusiness growth agenda Ministerial statement The Government’s plan for growth is sensible conservative fiscal policy, strong orthodox monetary policy, and an ongoing programme of microeconomic reform that enhances the competitiveness and confidence of Kiwi businesses. It is crucial that we pull on all three of these levers. Our programme of microeconomic reform is called the […]
Read MoreBlack hole feasibility expenditure Ministerial statement Some costs of investigating the viability of a new proposal or project – that is, feasibility expenditure – are currently neither immediately tax deductible, nor depreciable. As a result, it falls into what businesses describe as the black hole. Tax consequences should not be an obstacle to businesses innovating […]
Read MoreEarthquake Commission (EQC) premium rate increase Ministerial statement With the help of international re-insurance, the [National Disaster] Fund has so far paid out over $9.5 billion in claims to those affected by the Canterbury earthquakes. It is currently expected to pay out another $550 million in claims for the Kaikōura earthquakes. Those claims will completely […]
Read MoreInfrastructure investment Ministerial statement The Government’s second fiscal priority in this budget is investing in the infrastructure for a growing economy. This Government has a strong track record as New Zealand’s infrastructure government. Over the last several years we have grown infrastructure spending considerably and commenced some major transformative investments in New Zealand’s public infrastructure […]
Read MorePublic services investment Ministerial statement Mr Speaker, the Government’s biggest single fiscal priority in Budget 2017 is to invest in the public services necessary for a growing country. We are therefore allocating $7 billion over four years to sustain and expand public services in health, education, law and order and social development. This investment reflects […]
Read MoreSocial investments Ministerial statement Budget 2017 includes $321 million for fourteen cross-agency social investment initiatives that are designed to tackle long-term issues for vulnerable New Zealanders. These cover areas like helping kids get a better start in life; addressing barriers to employment and independence; and reducing criminal reoffending. A big focus in our social investment […]
Read More2017 Budget Highlights Budget purse prised open for election year Finance Minister Steven Joyce’s inaugural budget continues the theme of steady-as-she-goes stewardship, but was not without a sprinkle of election-year treats. Not so much an election-year lolly scramble – more a smattering of paleo snacks. The key tax announcement is a change to the tax […]
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