-
Watch Video
-
Related
Here are the main points from John Key's speech on February 9, 2010.
Tax
The government agrees with the Tax Working Group that New Zealand
relies heavily on the taxes most harmful to growth, particularly
corporate and personal income taxes; that there is a hole in the
tax base around the taxation of property, that the tax system lacks
integrity and fairness because of differences in the treatment of
entities, and that there are significant risks to the
sustainability of the tax revenue base.
The government will therefore be introducing measures this year to reform the tax system (as part of the Budget in May).
They are looking at possible reductions personal tax rates across the board.
They will not be developing any proposals for a land tax, a comprehensive capital gains tax, or a risk-free return method (RFRM) for taxing residential investment properties.
The government is also considering a moderate increase in the rate of GST, to no more than 15%.
Better public services
The pressure on government departments to lift their game will be
constant.
Most agencies will see no additional funding for several years.
Science and innovation
This year the Primary Growth Partnership gets fully up and running,
with the government investing up to $40 million, alongside
industry, in research and innovation to boost New Zealand's
primary, forestry and food sectors. This investment rises to $70
million in future years.
The government is also investing significantly this year in the Domestic Centre for Agricultural Greenhouse Gas Research, and in the Global Research Alliance, to drive research on agricultural greenhouse gas emissions.
Trade
The government will press ahead with working towards a free-trade
agreement with the US through the Trans-Pacific Partnership.
The government also intends to push hard for progress on the Single Economic Market with Australia.
Resources
In general, the government is in favour of unlocking resources for
economic benefit and to create better-paid jobs for New
Zealanders.
During this year, the government will progress an action plan to unlock New Zealand's petroleum potential. Estimates are that the petroleum sector could generate many billions more in export revenues by 2025.
The government will shortly be releasing a discussion document for public consultation on potential changes to Schedule 4 of the Crown Minerals Act. Schedule 4 is the part of the Crown Minerals Act which prohibits mining or prospecting on specified areas of Crown land.
The discussion document will recommend that some areas of Crown land be removed from Schedule 4 and in addition that some areas currently not in Schedule 4 be added to it.
The government is also proposing to establish a new Conservation Fund, potentially drawing on royalty revenue from mining operations on Crown land.
The government will also take action this year to remove particular regulatory roadblocks to water storage and irrigation in Canterbury.
The government will introduce legislation this year to change the regulations governing the aquaculture industry.
Improving access to capital
The government has been considering the report of the Capital
Market Development Taskforce as a matter of priority. In the next
week or so, they will release their response to the Taskforce's
recommendations.
Investing in infrastructure
The government intends to invest $10.7 billion over 10 years on
building new state highways. Construction will begin this year on
the Te Rapa Bypass in the Waikato, the Christchurch Western
Corridor and the Te Atatu-Lincoln section of Auckland's Western
Ring Route.
What do you think about the proposed changes? Have your
say on our messageboard below.
Add a Comment:
Post new commentgazzacanta said on 2010-02-22 @ 23:42 NZDT: Report abusive post
I agree with the board thrust of the government. I think they are not going far enough. I would like to see higher GST and much lower personal taxes. Perhaps no personal tax on income up to $15,000, 20 cents per dollar on income $15 - $60k, then 30 cents for income over $60k
hkim129 said on 2010-02-12 @ 20:10 NZDT: Report abusive post
I have one question regarding the proposed GST increase. Given that general public is concerned about the inevitable increase in consumer product prices and its impact, I wonder whether increasing the GST rate to minimum (e.g 13% instead of the proposed 15%) yet decreasing the GST rate for businesses may be able to solve the problem to a certain degree (allowing businesses to offer their goods at lower prices)? or is there no chance at all this would work?
Shined said on 2010-02-12 @ 16:05 NZDT: Report abusive post
Yet another example of a government that breaks its promises and lies through its teeth, why am I not supprised. This country although less hard hit by the recession was still hit and is still coming into a recovery phase. I feel the economy needs to grow by at least 2.5% to say we are there. Increasing GST is not going to help at all its simply going to stall the economy again, come on Mr Key - get a clue. My wife and I would bother suffer severely if GST increased as would a plethora of others
icons said on 2010-02-12 @ 00:10 NZDT: Report abusive post
Goodbye Mr Keys. If you even attempt to increase GST you will destroy the lives of middle NZer's and like myself a lower income person whom as a fmaily we struggle enough now.. I can see a snap election on the cards. what do ther think?? I know for sure he won't be back in.. I only can pray that labour can undo the damage caused by greedy sly national party members
Mare1 said on 2010-02-11 @ 23:09 NZDT: Report abusive post
We are a small business still establishing ourselves in the market place, if GST is increased we dont want to increase our pricing as we know people out there dont have alot of money to get by as it is. This means we will end up with less net profit which us barely enough for us to live on as is and therefore struggle to stay afloat.