Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

New Tax - New Headache

Dr Cullen's brand new tax on superannuation savings breaks his pre-election promise of no new taxes and creates administrative headaches for employers and employees, Opposition Revenue Spokesperson Annabel Young said today.

"The Government tried to tell New Zealanders and business there would be no new taxes until after the review of taxation. He has now announced the 5 per cent 'fund withdrawal tax' on superannuation.

"The Government wants to stop people avoiding the 39 cent tax rate - this change just means they'll avoid it in a different way. All the Government has done is give them new and better ways to avoid the tax.

"We are seeing classic bad tax policy in the making - legislation was rushed through before Christmas and now the Government is trying to plug the gaps.

"Any increase in taxation means there is more incentive for tax avoidance, a fact which Dr Cullen seems to have just realised.

"This new tax just patches up the Minister's mistakes and makes the tax system more complicated and time-consuming.

"The Government's tax hikes go from bad to worse. In a few days they will be forcing New Zealanders to pay more tax, when the economy clearly shows they don't need to.

"They've mucked up the law change and created all sorts of anomalies and unfairness and are bringing in more complexity and costs through the 'fund withdrawal tax' and the three tier fringe benefit taxes.

"Small and medium sized business need less hassle, administration and tax headaches not more."

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages