Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Diversified economy supported by strong well-rounded budget

26 May 2016

New Zealand’s vision for more diversified economy supported by strong well-rounded budget

Global accounting body, CPA Australia says today’s budget delivers on New Zealand’s vision to develop a more diversified economy.

CPA Australia chief executive, Alex Malley said the investments announced today, particularly in areas of science, innovation and training, would have longer term benefits for the country’s economic position.

Today’s announcements will see cross-government investment in science and innovation increase to $1.6 billion annually by 2019/20.

“Investing in the country’s science and innovation capability is exactly the type of investment that can lead to real transformation,” Mr Malley said.

“Too often we hear governments talk about the importance of innovation without anything meaningful behind it. The measures in today’s budget will build capability and assist in the rapid commercialisation of ideas.”

“The jobs of the future and the growth industries of the future will come from the ideas of today.”

“Investment in areas of science and innovation make New Zealand an attractive place for the best and brightest to build their careers, leading to new innovations and technologies with export potential.”

“Investing $257 million over four years for tertiary education and skills development in key areas such as science, engineering, agriculture and trades will create the workforce New Zealand needs.”

“Overall, New Zealand is in a strong economic position and today we saw a fiscally responsible budget underpinned by steady growth figures, falling debt, falling unemployment and rising wages.”

“In his eighth budget, Bill English has delivered a strategically savvy budget which does much of the heavy lifting required to improve the underlying budget position, while still being able to address a number of key social policy issues.”

“This is a well-rounded budget with significant investments in health, infrastructure and social investment in areas that address the needs of some of New Zealand’s most vulnerable people," Mr Malley said.

Income Tax

Today’s budget made no specific commitment to reducing income taxes.

“The Government has been clear that the reduction of income taxes remains a priority but only when economic and fiscal conditions allow. In the broader context of the budget this is prudent and seems appropriate. We would imagine this will remain an issue in the lead up to next year’s election.”

SME tax package

The budget also contained details of support for small business through a SME-friendly tax package.

“The changes to the payment of provisional tax announced in April and included in this budget will assist in the reduction of compliance costs and will ease the cash flow burdens that are often experienced by small business.”

“These are positive changes and we are always supportive of initiatives that address the compliance burden on business.”

Inland Revenue Administration System

CPA Australia acknowledges the Government’s commitment to invest in Inland Revenue’s new tax administration system.

“The development and delivery of new systems is rarely without complication, but a more simplified administration system is required and the benefits will be realised over time.”

Tax compliance

CPA Australia also notes that the Key Government is being responsive to the global issue of ensuring multinational companies contribute the appropriate amount of tax to the various jurisdictions where they


“The incremental law reform and multilateral efforts led by the OECD and G20 to tackle Base Erosion and Profit Shifting (BEPS) must continue to be supported and we note the progress that is being made.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. 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