What The Aussies Do On Tax Is Important
August 14th, 2009
While NZ and Aust draw closer to a single economic market, there are other indications of how closely related the two economies are even without further loosening of rules. Finance Minister Bill English says if Aust makes big changes to its GST or personal tax rates, the pressure would be on NZ to respond to maintain trans-Tasman competitiveness. A comprehensive tax system review is underway in Aust which could deliver dramatic outcomes. English says these would have inevitable flow-on effects.
He says “If they did something like put their GST up and dropped their income tax rates and their company rate quite a bit, it would have an impact on us.” However English has no inside knowledge of the Aust Govt’s thinking or the likely findings of the tax review. In NZ, a tax review group led by Professor Bob Buckle at Victoria University is to report by the end of the year, and has an open brief to consider all options.
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