Parliament

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

 

Copeland seeks fairer tax deal for super funds

Media Statement For immediate release Friday, 29 August, 2003

Copeland seeks fairer tax deal for super funds

Government moves to cut the tax on employer contributions to super funds have it half right, United Future's Gordon Copeland says.

"The cuts means employer contributions will now be taxed 21% for those earning less than $38,000 and 15% for those under $9500, and that's great - but there is an anomaly that still needs fixing," Mr Copeland, United Future's revenue spokesman, said.

"So for once, let's give the benefit to the tax payer rather than the consolidated fund.

"The system proposed by the Government has a problem for those earning close to the $38,000 threshold. If the employee's earnings plus the employer's contribution to the super fund total less than $38,000 then both amounts will be taxed at 21%.

"However if a person is earning, say, $36,000 and the employer is making a contribution equal to 10% of that salary (i.e. $3,600) then since the total amounts to $39,600 - just above the $38,000 threshold - then the whole of the employer's contribution will be taxed at 33 cents.

"I would prefer to see both the earnings and the employer's contributions taxed at 21 cents. Unless this change is made the employee is being overtaxed at 12 cents in the dollar on the $2000, which remains under $38,000. The intent of the change is then negated in relation to that $2000.

"This is also more consistent with the tax position for those earning over $60,000.

"At that point, tax remains at 33 cents on the employer's contributions even although it goes up to 39 cents on the salary component of the employee's total earnings. This confers six cents in the dollar tax advantage on those earning over $60,000.

"Therefore, I think it is consistent with the overall policy intent for the new rules to tax the employer's contribution at the 21 cents rate whenever an employee's salary is below the $38,000 threshold.

Mr Copeland said he would take the matter up at the Finance and Expenditure Committee, which is currently considering the Tax Bill.

Ends.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

State Highways: $1.4 Billion For Road Safety Improvements

The Safe Network Programme will make 870 kilometres of high volume, high-risk State Highways safer by 2021 with improvements like median and side barriers, rumble strips, and shoulder widening. More>>

ALSO:

Dealing Crackdown, Addiction Support: Government Action On Synthetics

The NZ Drug Foundation has welcomed the Government’s response to synthetic drug deaths. The response strikes a balance between giving law enforcement the tools they need to target criminal networks and changing drug law to make it easier for people to access help when they need it. More>>

ALSO:

Strategy Committee Unanimous: Wellington To Forge Ahead With Convention Centre

The three-storey Cable Street building, with around 18,000-square metres of floor space, will comfortably be able to host 1500 people for conventions. It includes a 1651sq m exhibition area that will attract international exhibitions too big for nearby Te Papa and provide an always-changing visitor attraction. More>>

ALSO:

Surveying The Surveillance: First IGIS Review Of Warrants Under New Act

The report sets out the Inspector-General’s interpretation of the new warrant provisions under the ISA and her expectations of the GCSB and NZSIS when they prepare warrant applications. More>>

SSC: 2018 Public Service Workforce Data Published

State Services Commissioner Peter Hughes has published the 2018 Our People, Public Service Workforce Data , which shows the Public Service is making significant progress in important areas. More>>

ALSO:

Sinking Cap: Auctions, Permanent Forests, Added To ETS

The move to auctions, signalled in an August consultation paper, will help put a cap on the number of emission units available over time. Annual announcements, looking forward five years, will help provide certainty for scheme participants, she said. More>>

ALSO:

Joint Select Committee Report: Achieving Smokefree 2025

In a historic first for select committees, the Māori Affairs Committee and the Health Committee presented their joint report on achieving the Smokefree 2025 goal to the House on Tuesday, 11 December 2018. More>>

"Shared Interests And Democratic Values": Peters To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. for talks with US Secretary of State Michael R. Pompeo and other senior members of the US Administration. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels