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

Gordon Campbell: On The Demise Of The Tokyo Olympics

As the Covid vaccines roll out around the world, the Tokyo Olympics are looming as a major test of when (and whether) something akin to global normality can return – to international travel, to global tourism, to professional sport and to mass gatherings of human beings. Currently though, it looks like a forlorn hope that Japan will be able to host the Olympics in late July. Herd immunity on any significant scale seems possible only by December 2021, at the earliest... More>>

 

New Zealand Government: Cook Islanders To Resume Travel To New Zealand

The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such ... More>>

ALSO:

A New Year: No politicians at Rātana in 2021

Annual celebrations at Rātana pā will be different this year, amid a decision to hold an internal hui for church adherents only… More>>

ALSO:

Government: Pre-Departure Testing Extended To All Passengers To New Zealand

To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. More>>

ALSO:

Covid: Border Exception for 1000 International Students

The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began....More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels