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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election