Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Tax & KiwiSaver policies generally on right path

Media release

8 October 2008

Tax & KiwiSaver policies generally on the right path

Business NZ has described National's tax & KiwiSaver policies as generally sensible and on the right path given current economic circumstances.

Chief Executive Phil O'Reilly says business has been calling for some time for tax relief and the party's plan to move over time towards a flatter, broader tax structure with only three tiers would be healthy for economic growth.

"We particularly applaud Mr Key's statement that over time the party wants to move to a top rate of 33%. This would put our economy in a far stronger position than the current 39%. It will be important especially for the many small businesses that are unincorporated and taxed at the top personal rate."

But Mr O'Reilly described the decision to remove the R&D tax credit as unfortunate and unhelpful.

"We feel that the R&D credit scheme should have been given time to see whether it would work to build innovation by New Zealand firms. Companies that have already invested significant amounts to get ready to take advantage of the tax credit will be unhappy with this policy change. The National party needs to commit to a thoroughgoing review of New Zealand's innovation system to work out alternative ways of ensuring our companies can invest more in innovation and research and development."

He said there were positives in National's approach to KiwiSaver.

"Lowering the KiwiSaver minimum contribution rate to 2% will help make the scheme more affordable for those on lower incomes, and getting rid of the recent legislation that discriminates against those who can't afford to join KiwiSaver will make it fairer. Of course it will still be important for employers and employees to be free to negotiate mutually acceptable terms and conditions of employment.

"There may be some concern however around the removal of the employer tax credit, especially among small businesses that will be more exposed in the short term to additional costs incurred when employees join the scheme.

"It will be important for the government to work with the business sector to reduce other compliance cost areas to help offset these cost pressures from KiwiSaver."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Crown Accounts: Slightly Softer Growth Expected In PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. More>>


Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>


Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>