If it was sport we’d be lamenting being behind the Aussies.
But since it’s tax, their decision to restrict planned cuts in the company tax rate to 29% from 2013/14 while ours will be down to 28% in the next financial year is something to celebrate.
Finance Minsiter Bill English said:
“Taken together with other measures in the Budget, the reduction in New Zealand’s company tax rate to 28 per cent from the 2011/12 income year will help our competitive position and help provide businesses with the right incentives to invest and export,” Mr English says.
“It is significant that from next year New Zealand’s company tax rate will be two cents in the dollar below Australia’s for two years and then one cent lower. That hasn’t happened for many years.
“New Zealand’s Budget tax package is unique. We have been able to change the tax mix, including significant income and company tax cuts, at a time when many other countries are increasing taxes to tackle rising debt and snowballing deficits.
“The Government will continue with its programme of policies that tilt the economy away from spending, borrowing and unsustainable increases in government spending, and towards saving, exporting and investment in productive parts of the economy.”
The government has taken a lot of criticism this week because of the introduction of fuel and power to the ETS. Some floating voters are saying that’s enough for them to not vote for National next year.
Choosing which party to vote for – or against – on one policy is very short sighted.
The ETS may not be popular but the one Labour rushed through just before the last election was even worse and there are a whole lot of other polices National has introduced which will pull the country back from the downward path along which Labour pushed us.
Among policies introduced which will help the rural sector in particular with spin-offs for the whole country are:
• Rolling out the Primary Growth Partnership. When fully up and running it will invest $140 million a year in primary sector research and development.
• Establishing the Global Research Alliance on Agricultural Greenhouse Gases and allocating $45 million to it.
• Committing $50 million over 10 years to the New Zealand Agricultural Greenhouse Gas Research Centre.
• Investing $321 million over four years in research, science, and technology.
• Cutting income tax across the board on 1 October with a top rate of 33 per cent, and increasing GST to 15 per cent.
• Cutting the company rate to 28 per cent from the 2010/11 tax year.
• Reducing tax rates on savings.
• Driving a second phase of RMA reforms.
• Removing regulatory roadblocks to water storage and irrigation.
• Establishing the Wool Taskforce to provide leadership and restore profitability to the strong wool sector.
• Put in place an amended Emissions Trading Scheme to ensure fairer treatment of agriculture, while halving the cost to households.
• Following a more balanced approach to Tenure Review and High Country policy.
• Pursuing an ambitious and wide-ranging array of free trade agreements.
• Implementing graduate bonding schemes for rural vets, and for teachers, doctors, nurses, and midwives working in hard-to-staff areas.
• Investing $7.5 billion over five years to tackle bottlenecks in our roading, electricity, and telecommunications networks.
• Bringing fast broadband to rural schools and households.
• Improving frontline healthcare services with an extra $512 million in this year’s Budget, increasing spending to $13.5 billion in 2010/11.
• An extra $1.4 billion into education over four years for better schooling and early childhood education.
• Significantly increasing penalties for animal welfare offences.
• Delivering the biggest boost in Government funding for animal welfare in over a decade.
• Introducing a number of major new Animal Welfare codes