NZers work longer to pay off annual tax burden
For immediate release
New Zealanders work longer to pay off annual tax burden
New Zealanders’ personal tax debt is worsening according to early research by leading national accounting firm, Staples Rodway.
Tax Freedom Day(TM) - the day you’ve officially paid off all your taxes and every dollar earned goes into your own back - pocket is likely to fall in late May/very early June.
Roger Thompson, Staples Rodway Tax Director, says it appears the average New Zealander may have to work even longer this year just to pay off their direct and indirect tax debts.
Staples Rodway’s Tax Freedom Day(TM) research – which is the only internationally benchmarked research to compare New Zealanders directly with taxpayers in Australia, the United Kingdom and the United States of America - paints a bleak picture for New Zealand taxpayers. Mr Thompson says New Zealand’s Tax Freedom Day(TM) has deteriorated significantly since 2002.
“Over the last few years the deterioration has occurred despite strong GDP growth. This year though, the combination of strong tax revenue growth and a sharp slowing in GDP growth indicates we are facing a further decline,” he says.
Last year it took the average New Zealander 143 days to pay off his or her income tax, local body rates, and other taxes such as petrol tax, cigarette tax and alcohol levies.
“The research also indicates that Australians are better off than New Zealanders when paying their tax debts, which will further compound the argument persuading Kiwis across the ditch. Our research takes into account all indirect taxes Australians pay and can be compared to our New Zealand data. At this stage it is not looking good,” says Mr Thompson.
The Staples Rodway research is based on international methodology, which enables an accurate comparison between New Zealander’s tax burden and those of other countries.
Staples Rodway expects to announce a definitive date for Tax Freedom Day(TM) 2006 in May and people will be able to determine their own personal Tax Freedom Day(TM) by visiting the Staples Rodway website www.staplesrodway.com and going to the Tax Freedom Day(TM) calculator from that date.
Staples Rodway is New Zealand’s leading independently owned accounting firm that provides a full range of intelligent business services to successful New Zealand Businesses. It has offices in Auckland, Hamilton, Christchurch, Hawke’s Bay, New Plymouth and Tauranga.