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

 

Budget offers no tax surprises, but are tax cuts on horizon?

26 May 2016

Budget 2016 offers no tax surprises, but are tax cuts on the horizon?

Budget 2016 continued the theme of not being the vehicle to announce tax policy measures, according to Deloitte.

Deloitte CEO Thomas Pippos says the previously foreshadowed business tax changes around provisional tax, withholding tax rules and compliance matters were well received when announced, and continue to be so.

“The only criticism with these types of measures is the time that it takes for some long standing issues to be addressed, many of which are more remedial in nature and not naturally aligned with a Budget process,” says Mr Pippos.

Mr Pippos adds that tax cuts are inevitably on the horizon with projected surpluses anticipated to hit $5 billion and growing from 2019.

“A good problem to have, but a problem nonetheless, given the spread of who pays what tax with 19% of the population paying 1% of personal income taxes at one end of the spectrum, and 8% of the population paying 40% of all personal taxes at the other end,” says Mr Pippos.

“Adding to the complexity are the gravitational forces starting to hit corporate tax rates, including in Australia where they are targeting a 25% corporate tax rate over a 10 year horizon,” he adds.

“Certainly the ability for future tax cuts provides a blank canvass for the next term that could be painted differently depending who ends up holding the brush,” concludes Mr Pippos.

Deloitte’s team of experts look at today’s budget announcement, particularly how it relates to the long-term success of New Zealand. For our full Budget 2016 commentary and analysis go towww.deloitte.com/nz/2016budget.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Cyclone Gita: Metservice Forecasts Gita To Impact New Zealand - Be Prepared

Cyclone Gita is expected to approach New Zealand from the northwest early next week. There remains some uncertainty with regards to the speed and track of Gita, but the passage of this system across New Zealand on Tuesday and Wednesday is likely to bring a period of highly impactful severe weather.

People should be aware of the potential for coastal inundation, especially where high waves,low atmospheric pressure and strong onshore winds come together ... More>>

ALSO:

.

 
 

Commerce, Etc: Thicker Bright Line For Real Estate

Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years in legislation currently making its way through Parliament.More>>

ALSO:

Prison Inspections: Reports on Manawatu and Paremoremo Released

The Office of the Inspectorate today released reports into Manawatu Prison and Auckland Prison (Paremoremo), the first two resulting from a programme of inspections of New Zealand prisons. More>>

Gordon Campbell: On National’s Leadership Contest

National needs a new leader able to: (a) compete with, undermine and defeat a currently popular and politically adept Prime Minister; (b) define whether National now sees itself as being a traditional conservative party or a modern neo-liberal one; (c) devise a strategy that addresses National’s chronic lack of a viable coalition partner More>>

ALSO:

Whistle Blowers: Government To Review Law On Protection

Work has begun on a review of the Protected Disclosures Act 2000, Minister of State Services Chris Hipkins said today. More>>

ALSO:

Christchurch: PM Launches 100% Electric Car Share Offering

The Southern Hemisphere’s biggest deployment of pure battery electric cars and largest pure EV car sharing model was officially launched in Christchurch today by Prime Minister Jacinda Ardern. More>>

ALSO:

Carer Pay Equity: Mental Health And Addiction Workers To Be Included

Dr Clark met yesterday with unions and employers to confirm the Government has agreed to negotiate an agreement to extend the Care and Support Pay Equity Settlement to mental health and addiction support workers. More>>

ALSO:

Hybrid Plan: America’s Cup Village Proposal Released

The proposal incorporates elements of the Wynyard Basin option, agreed by the council in December and publicly notified last month, and the Wynyard Point variant explored by the Government. More>>

ALSO:

Sallies' State of the Nation: Poorest Left Behind in Economic Boom

This year’s report shows that for many New Zealanders incomes have hardly moved, welfare needs have increased and rents are rising faster than incomes. This comes despite more jobs being created and GDP rising... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages