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Source: ONE News -
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For a Budget that wasn't supposed to contain many surprises, National's 2010 version certainly had a few, says ONE News Business Editor Corin Dann.
Tax cuts were far more comprehensive than most expected and the company tax cut (from 30% to 28%) was a big surprise. This gives New Zealand an initial edge over Australia and will also help to cushion the blow of the property tax changes for the commerical property sector.
Despite that, many are likely to be upset by the changes to depreciation rules for property investors and the housing market will be watched keenly over the next few weeks for any reaction.
In addition, while the personal tax cuts are bigger than most thought would be possible given the state of the goverment's books, they still expose National to political attack over comparision on an average earner getting $15 a week more while a cabinet minister will take home at least another $240 a week.
What is really remarkable about this Budget is that National is able to afford all of these changes without blowing their spending cap or increasing New Zealand's debt profile over the medium or long term.
One way in which they have done this is by re-prioritising spending and it may take some time to figure out just who has missed out on the new money. This could again by good fodder for opposition parties to attack National.
Overall, this Budget is attempting to shift the behaviour of Kiwis away from an over reliance on property and consumption so that we have a more balanced economic recovery.
Whether it goes far enough, or has it priorities right, remains open for debate.
Add a Comment:
Post new commentlauzyeah said on 2010-05-27 @ 14:22 NZDT: Report abusive post
I am coping now, just, with prices as they are, but once they go up im going to struggle.and if it wasn't for Working for families, i would have to be on a benefit, and im sure this is the case for thousands of parents.i'm working to get ahead, and im doing a damn good job too, would you rather they cut WFF and have thousands back on the benefit,using more money? think about it
westy mum said on 2010-05-24 @ 07:30 NZDT: Report abusive post
WELL WE ARE REALLY STRUGGLING NOW FAMILY OF SIX ONE PARENT WORKING WE CAN BEARLYH AFFORD FOOD WEEKLY NOW WE DONT DRIM\NK HAD TO GIVE THAT UP WE DONT SMOKE TO DEAR, WE HAD TO GIVE OUR CAR UP WE COULDNT AFFORD GAS SO WE USE THE TRAIN WE ARE WE GUNA GET A BACK COME ON IF IT WASNT FOR THE WORKERS OF THIS COUNTRY WHERE WOULD WE BE
entwine said on 2010-05-23 @ 20:32 NZDT: Report abusive post
Being a single 40+ female, with no children I think the budget will be of benefit to me. To be honest, I was a bit sick of the previous Governments working for families etc. We all have choices in life, why should I pay via my taxes for someone else deciding to have children? I struggle to make ends meet too!
Juanita01 said on 2010-05-21 @ 17:36 NZDT: Report abusive post
This is a step in the right direction. If people can not afford to have these childen, then stop. Stop complaining that things are going to cost more, stop spending! People have to start taking responsibility for there actions and stop expecting the government to hand them everything.
lauzyeah said on 2010-05-21 @ 15:50 NZDT: Report abusive post
I am a single mother of 2 children both under age 4, i am 23 , i am not on a benefit, and i am working to raise these boys. I cannot afford to stop working and go study to get a better job, if i did, i would have to go on the benefit, which would cost the government and tax payers more money. the government wants people off the benefit and working, but now have raised tax on everything, making it a hell of alot harder to do so.