Class of 2014

September 23, 2014

Prime Minister-elect John Key, his deputy Bill English and the new national MPs:

Bill English and I were proud to welcome National’s 15 new MPs to Parliament this morning.

 


Highest annual GDP growth for 10 years

September 19, 2014

Another reason to vote National for strong, stable government and a growing economy:

New Zealand continues to enjoy one of the fastest-growing economies in the developed world, confirming that the Government’s sensible economic programme is taking New Zealand in the right direction, Finance Minister Bill English says.

“It’s only through a strong economy that we can provide New Zealanders with new jobs, higher incomes and opportunities to get ahead,” he says. “The Government’s economic programme is successfully delivering those things and families can now look forward to the future with some confidence if we stick with that programme.”

Statistics New Zealand today reported gross domestic product expanded by 0.7 per cent in the June quarter. This took annual growth – from the June quarter 2013 to the June quarter 2014 – to 3.9 per cent – the highest growth rate for 10 years and the highest so far reported by OECD countries. Average annual growth was 3.5 per cent.

Mr English says New Zealand’s challenge is to build on the solid foundations provided by the growing economy.

“It’s pleasing to see the good progress we have made as a country over the past few years. The economy is growing, the Government’s books are on track to surplus and another 83,000 jobs have been created in the past year. But one or two years of growth will not change New Zealand’s economic prosperity. We need to stay on course to really lift our long-term economic performance.”

Growth in the latest quarter was driven by construction activity, up 2.2 per cent, business services, up 4.2 per cent, and retail trade and accommodation, up 1.4 per cent.

New Zealand’s 3.9 per cent GDP growth in the year to June compares with 3.1 per cent in Australia, 3.2 per cent in the United Kingdom, 2.5 per cent in the United States, 2.5 per cent in Canada, no growth in Japan and 1.3 per cent in Germany. Average growth across the OECD was 1.9 per cent.

National is delivering one of the strongest growth rates in the developed world. Party Vote National to keep the economy strong. #Working4NZ ntnl.org.nz/1wtJgA2


The only way

September 15, 2014

As the election gets closer and polls get tighter some people are beginning to think about getting clever with their votes.

Bill English just told Jamie Mackay on the Farming Show that if people want a National-led government they should vote for National and leave the coalition permutations up to the politicians when the votes are counted.

It’s the party vote that counts and the only way to get a strong, stable government is to give National your party vote.

It’s also the only way to keep the country on course.

National’s clear economic plan and careful financial management is taking New Zealand in the right direction. ntnl.org.nz/1lQaKiR #Working4NZ


A little more or a lot less

September 9, 2014

National will continue with the economic plan that’s working if voters back it:

A re-elected National Government will return to surplus this financial year and stay there so we can reduce debt, reduce ACC levies on households and businesses and start modestly reducing income taxes, Finance Spokesman Bill English says.

“National’s clear economic plan is working for New Zealand by successfully supporting higher wages and more jobs, and ensuring government spending is invested wisely to deliver better results,” he said when issuing National’s Finance Policy today.

“National is working hard to ensure the economy grows sustainably into the future, supported by more savings, productive investment and exports. This will provide opportunities for Kiwi families to get ahead here in New Zealand.”

As set out in the Budget, a National-led Government will restrict average Budget allowances for discretionary new spending and revenue measures to $1.5 billion a year over the next three years. Within this allowance National will:

• Allow around $1 billion a year for new spending, including between $600 million and $700 million a year more for health and education. This total new spending is consistent with the level of new spending in our last two Budgets and it’s well below the $2 billion to $3 billion spending increases under the last Labour government, which had little to show for them. 


Clear and simple

September 5, 2014

National will be announcing its economic policy next week.

When it does the leader and finance spokesman will understand it and agree on the details, which is more than Labour seems capable of.

But then in another contrast with Labour, National’s economic plan is clear, it’s simple and it’s working for New Zealand:

Join the team that's working >> http://nzyn.at/teamkey


Answer’s maybe and that’s final

September 5, 2014

David Cunliffe has given five different answers to the question of whether or not CGT will be due on the family home when your parents die.

The answer is maybe and that’s final as far as he’s concerned because whether it is or whether it isn’t he’s got a problem.

If it is it will be a death tax by stealth which would be politically unsellable.

New Zealand families will be distressed to learn that Labour would force them to sell their deceased parents’ home within a month of their death or face a punitive capital gains tax, National Party Finance Spokesman Bill English says.

“The more David Cunliffe tries to explain his complicated capital gains tax, the more he ties himself in knots and confuses New Zealanders,” Mr English says.

“Last night on NewstalkZB, he contradicted his finance spokesman by saying Labour’s capital gain tax would apply to a family home after the death of a parent, unless it was sold within a month.

“In other words, he would force families to rush through the sale of their parents’ family home at a distressing time in their lives, or penalise them with a new tax.

“Just hours earlier, on RadioLive David Parker said the capital gains tax would not apply.

“If David Cunliffe and David Parker cannot get their story straight, it is little wonder that New Zealanders are confused and uncertain about Labour’s higher tax agenda.

“This is just one of five new taxes Labour and the Greens would impose on New Zealanders. This would stall New Zealand’s good economic momentum, creating uncertainty and costing jobs

“By contrast, National’s clear economic plan is successfully supporting higher wages and more jobs. It is steering New Zealand back to surplus this year and ensuring government spending is invested wisely to deliver better results,” Mr English says.

But if CTG isn’t levied on the family home when your parents die the tax take won’t live up to their projections which will leave a big hole in their budget.

Voters have a right to know the answer before the election.

Prime Minister John Key stepped up his attack on Labour’s capital gains tax today, suggesting it will create a headache for grieving children who inherit a house on the death of their parents. . .

Mr Key said: “You’d have to say by any definition it’s a complete and utter mess.”

Mr Key said Mr Cunliffe had yesterday told New Zealanders “that if they don’t sell the family home of their deceased parents, then within one month they will have to start paying a capital gains tax”.

“‘That is a horrifying thought for New Zealanders to be put in that position. Probate wouldn’t even come through within one month.

“I think everyone would accept the number one priority when your parent or parents pass away is not whether you should be out there flogging off the family home so you don’t have to pay a capital gains tax, it’s dealing with all the emotions and stress and issues that go with losing a loved one.”

Labour’s policy states the tax is payable only on the gains since inheritance and only when the home is sold.

Mr Cunliffe this morning said the fine details of when an inherited home would be liable for the tax would be worked out by and expert advisory group.

“Other countries have a range of periods — Aussie uses two years, some countries from the point of death, others from the point of settlement.”

Mr Key said Labour should have the answers now.

“We are now a couple of weeks out from an election this is a key policy for Labour and they can’t tell New Zealanders when it comes to their number one asset, their family home, how it will be treated.”

Will Labour's Capital Gains Tax (one of five new taxes) punish Kiwi families when their parents pass away? Let's ask them.


CGT complicated, complex and costly

September 3, 2014

Prime Minister John Key floored David Cunliffe last night when he couldn’t answer whether or not Labour’s capital gains tax would apply to homes owned by trusts.

After the debate he said it wouldn’t but that’s not what the policy says:

David Cunliffe’s inability to answer the most basic questions about Labour’s proposed capital gains tax underlines key problems identified by successive tax reviews, National Party Finance Spokesman Bill English says.

“David Cunliffe’s failure to explain how he would implement a new capital gains tax, which has now been Labour policy for more than three years, will leave many thousands of New Zealanders confused and uncertain,” Mr English says.

“Nowhere in Labour’s capital gains tax policy does it exclude family homes owned by trusts. In fact, Labour actually says: ‘We will ensure trusts are not used as a means of avoiding a CGT’. David Cunliffe cannot have it both ways.

“And now Labour is trying to say the test for whether a capital gains tax applies is not whether a trust owns the property, but who lives in it. That would require Inland Revenue to confirm the living arrangements of householders in deciding whether the tax would apply.

What if there are adult children paying rent?

What if there is a boarder?

What if the boarder is a relative, for example an elderly parent?

Would it make a difference if the relative lived in a granny flat?

Would it make a difference if someone living in the granny flat wasn’t a relative?

What if there’s more than one family in the house?

“This latest confusion follows Labour previously making contradictory claims about whether the KiwiSaver accounts of 2.3 million New Zealanders would be exempt from their new tax. They now claim they would be exempt, but this is not reflected in their policy or their costings.”

Mr English says Labour’s proposed capital gains tax was already full of holes, applying only to only a quarter of the housing market, but to every New Zealand business and farm.

“All of this underlines what tax experts and independent reviews have said over the past 20 years. Implementing an extra capital gains tax would be much more complicated and confusing in practice than it appears in theory.

“By contrast, National’s clear economic plan is successfully supporting higher wages and more jobs. It is steering New Zealand back to surplus this year and ensuring government spending is invested wisely to deliver better results.

“The five new taxes promised by Labour and the Greens would stall the New Zealand economy and cost thousands of jobs.”

People who trade in property or shares already pay taxes on the capital gains.

Introducing Labour’s CTG CGT would add cost  and complexity to the tax system which wouldn’t be justified by the money raised.

Labour wants to introduce a CTG CGT and  four more taxes for the worst reason – so it can spend more.

The best way to increase the tax take is through economic growth which enables businesses to make bigger profits, increase jobs and wages.

The worst way is to increase tax rates and add new taxes which add complications, complexity and costs and put a hand brake on economic growth.


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