1. SIMON BRIDGES (National—Tauranga) Link to this
to the Minister of Revenue
What reports has he received on the tax changes announced in the Budget?
Hon PETER DUNNE (Minister of Revenue) Link to this
I have received a remarkably positive level of feedback from the Budget tax changes. People have even stopped me in the street to congratulate the Government on the Budget because it provides real tax cuts for all New Zealanders. A person on the average wage of around $50,000 gets a $29 per week tax cut. Even after the increase in GST is taken into account, that person is more than $15 a week better off if he or she is paying an average rent or mortgage. The reduction in the top tax rate means that many high school teachers, nurses, and police no longer pay a higher rate than wealthy individuals who are able to structure their tax affairs and effectively select the tax rate they want. I have also received positive reaction from the Tax Working Group, including organisations like Deloitte, which said this Budget was a series of steps in the right direction, and KPMG, which said that it was a smart but bold approach, and even the Institute of Chartered Accountants said that it was almost like taking white rabbits out of a hat.
Mr SPEAKERBefore I call the Minister, because of a particularly loud interjection from my left I could not hear that question. I ask Simon Bridges to repeat it.
It does so in about five ways. Firstly, it gives more New Zealanders more of a chance to determine how they spend the money that they earn. Secondly, it ensures that those on higher incomes pay their fair share of tax, through the alignment of the trust and top personal rates to overcome avoidance. Thirdly, the new amount of money voted in Inland Revenue for audit purposes will ensure a return over the next 4 years of some $750 million. The changes in the property sector are about fairness. Finally, we have also removed the ability for people with rental losses to use those losses to access Working for Families. Overall, it is a fair and good Budget.
What is the Government looking to do to assist businesses with the implementation of the GST increase from 1 October?
I announced on Friday the establishment of a GST advisory panel to help businesses implement the GST increase. That panel will act as a conduit between businesses and the Government. There will be a dedicated website, a special 0800 number to deal with queries, etc. There are also measures passed in the post-Budget legislation providing for the remission of late filing penalties and the use of money interest, where this is reasonably attributed to the rise in the GST rate. There are also some other transitional measures that will be positive for business.
Stuart NashHas the Minister received a call from the chief executive of Telecom, Paul Reynolds, thanking him for his $344,000-per-year tax cut?
No, I have not, for the simple reason that I think Dr Reynolds is probably far more focused on trying to make sure Telecom provides a quality service to New Zealanders, rather than worrying about the gripes from the Opposition.