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

 


Good decision to remove duty on cheques – Payments NZ

Good decision to remove duty on cheques – Payments NZ

The Government’s decision to remove the 5 cent duty on cheques as part of the 2014 Budget is evidence of New Zealand’s rapidly evolving payments systems.
The move reflects New Zealanders’ declining use of cheques. The processes and efforts to collect the ever-decreasing cheque duty are likely to outweigh any taxation income benefits that the government receives, according to Payments NZ.

Cheque use in New Zealand is naturally declining at a very fast rate. In April 2014, 3.78 million cheques were processed, which is a decrease of 23% since April 2013 (4.92 million). This mirrors a world-wide trend, although New Zealand’s natural rate of decline appears comparatively faster.

In 2013, 55 million cheques were processed in New Zealand. Cheques are now the least used form of payment in this country. By comparison, in 2004 192 million cheques were processed.

“It won’t be a surprise to most people that cheques aren’t used as much anymore,” said Payments NZ Chief Executive Steve Wiggins. “New Zealand was quick to adopt electronic payment mechanisms and we make billions of transactions a year through electronic means.”

As New Zealanders migrate to more efficient, convenient and safe electronic payments, the use of cheques is likely to continue its downward trend.

Mr Wiggins said Payments NZ would continue to appropriately manage the natural decline of cheques.

“We are also very aware that some groups of New Zealanders still rely on cheques as a way to make a payment and we will be ensuring these segments will be appropriately catered for.”

New rules and standards produced by Payments NZ will govern incoming solutions for mobile payments, and have just come into effect this week. These new rules and standards are designed to support banks and other providers to bring new electronic payment options to market for their customers.

About Payments NZ:

As an independent, non-competitive organisation overseeing payment systems, Payments NZ helps ensure the best interests of all stakeholders are considered in the evolution of payment system improvements.

Links to further information:
Cheque Duty Goes
www.paymentsnz.co.nz


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news