Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Top tax rate cut to help halt brain drain: Key

tax rate cut essential to halting brain drain: Key

May 17 (BusinessWire) - Cuts to the top rate of personal income tax will be part of a deliberate effort to encourage high-earning, skilled New Zealanders to stay in the country, Prime Minister John Key said today ahead of Thursday's Budget.

Challenged in his weekly post-Cabinet press conference on the fairness of cutting top personal tax rates, Key said New Zealand could not ignore that it had lost more of its skilled people offshore than any other country in the Organisation for Economic Cooperation and Development - a proxy for the developed world.

Those people included doctors, scientists, engineers, and entrepreneurs, as well as lawyers, accountants, and other skilled professionals.

"We need those people in our economy," said Key. "Part of what you are going to see on Thursday is a deliberate attempt to get people to say here and contribute to the economy."

To suggestions that a rise in the rate of GST from 12.5% to 15% would hit low income people hardest, Key said high income people spent more than those on low income and would therefore pay more of any extra GST.

Speculation is rife on exactly what tax cuts will be announced, although cuts at all current levels are expected, with the largest cut likely to be from 38% to 33% or lower for the top personal tax rate, to end the capacity for tax avoidance using lower-taxed entities such as companies and trusts to avoid the current top rate.

Key said there would be Budget package announcements relating to KiwiRail tomorrow.

(BusinessWire) 17:23:19

© Scoop Media

Business Headlines | Sci-Tech Headlines


Stats NZ: Unemployment Declines As Underutilisation Rises

The seasonally adjusted unemployment rate decreased to 4.7 percent in the March 2021 quarter, continuing to fall from its recent peak of 5.2 percent in the September 2020 quarter but remaining high compared with recent years, Stats NZ said today. ... More>>


Digitl: The Story Behind Vodafone’s FibreX Court Ruling

Vodafone’s FibreX service was in the news this week. What is the story behind the Fair Trading Act court case? More>>

Commerce Commission: Vodafone Found Guilty Of Misleading Conduct Over 'FibreX' Service

Vodafone NZ Limited has been found guilty of engaging in conduct that was liable to mislead consumers in relation to its FibreX branded broadband service. In a case brought by the Commerce Commission and heard last year, the Auckland District Court ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>

MYOB: SME Confidence In Economic Performance Still Cautious

New insights from the annual MYOB Business Monitor have shown the SME sector is still cautious about the potential for further economic recovery, with two-in-five (41%) expecting the New Zealand economy to decline this year. The latest research ... More>>

Tourism Industry Aotearoa: Trans-Tasman Bubble Benefits NZ

More people have entered New Zealand than have left since the opening of the trans-Tasman bubble, says Tourism Industry Aotearoa. Since the first flight from Australia to New Zealand took off from Sydney to Auckland on 19 April, the two-way Tasman travel ... More>>