Tax concession to take effect earlier

An earlier version of the attached press release was issued on Wednesday 15 October 2003. However an important development has occurred since. I had urged Revenue Minister Michael Cullen to introduce the change suggested by United Future with effect from 1 April 2004, i.e. the beginning of the new tax year. The Minister, whilst conceding my argument, agreed only to introduce it with next year’s Tax Bill so that it would take effect from 1 April 2005. This was, amongst other things, to allow time for the IRD to consult with business and to produce a new set of tax tables etc.

However things have changed since last week. The Minister decided to handle the matter by way of a supplementary order paper to this year’s Tax Bill following consultation with Business NZ. Business NZ advised him that their preference is for the truly progressive option I have proposed to be introduced by an SOP for application from 1 April 2004. They pointed out that this would be much simpler for employers rather than delaying the matter for one year. I concur entirely with that. I think it would have been messy to have introduced this system in two changes, one applying just for 12 months from 1 April 2004 until 1 April 2005 and the other, and correct version, coming in at the later date only.

Needless to say I am delighted with this further development.

Click here to United Future's press release United Future secures super tax concession

This is a press release from United Future NZ

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