Parliament

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

 

United Future Fingers All Over Budget Financials

Friday, 20 May 2005

United Future Fingers All Over Budget Financials

Gordon Copeland, United Future Finance and Revenue spokesperson, has revealed that many of the tax and financial elements in the Budget relate to his party's bids made to the Minister of Finance.

1. United Future Bid

That the tax brackets be adjusted to offset the effects of inflation since 1 April 2000.

Government Response

Tax brackets to be adjusted on 1 April 2008 for inflation between now and then and then at three yearly intervals thereafter.

2. United Future Bid

That earnings on superannuation funds be taxed at the marginal tax rate of the saver.

Government Response

Accepted.

3. United Future Bid

That capital gains tax on domestic share investments through managed funds be abolished.

Government Response

Accepted.

4. United Future Bid

That the amount of petroleum excise duty diverted into the Crown Account be reduced by five cents per litre.

Government Response

For the three years to 30 June 2009, a further $100 million a year will be diverted to the National Land Transport Fund.

5. United Future Bid

That workplace savings schemes allow savers to make a withdrawal to purchase a first home and that their contributions be tax free.

Government Response

A $1,000 up front contribution and the ability to withdraw all funds deposited plus a subsidy of up to $5,000 per saver to purchase a first home.


6. United Future Bid

That GST be removed from rates.

Government Response

Declined, but a rates rebate scheme for 150,000 superannuitant households introduced.


7. United Future Bid

That the tax rebate level for charities be increased from $630 per annum to $5,000 per annum and that company imputation credits be extended to registered charities.

Government Response

Declined


In summary, of the seven United Future bids in the tax and financial area, the Government picked up on six (in whole or in part) and declined one.

In all, the United Future bids acted on will yield annual savings to taxpayers of $566 million per annum.

In addition, although the delay in implementing the tax thresholds, and then only in part, can be characterised as "too little too late" it is an historic breakthrough. Never before has a Finance Minister committed to a regular adjustment to offset inflation.

The fundamental unfairness of fiscal drag has been pointed out by many people since the days when Rob Muldoon cynically used high inflation rates to boost his coffers at the expense of taxpayers. Yet, not until United Future joined the ranks in Parliament, has this legalised rort been brought to an end.

Not bad for a party of 8 MP's!

Table of Taxpayer Savings

$million per annum
Adjusting tax brackets for inflation
366
Adoption of marginal tax rates for superannuation savers
25
Removal of capital gains tax on sale of domestic shares
100
Rebates on rates
75

Total
566

Plus: $300 million diversion to National Land Transport Fund

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>

 
 

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages