New Zealand

Details

  • Service: Tax
  • Date: 1/05/2010

Contact

John Cantin
Partner - Tax
KPMG
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

 

Paul Dunne
Partner - Tax
KPMG
Phone: +64 9 367 5991

pfdunne@kpmg.co.nz

 

Tony Joyce
Partner - Tax
KPMG
Phone: +64 4 816 4512

tjjoyce@kpmg.co.nz

 

Taxmail - Henry Tax Review response 

Resource tax funds company and savings boost

 

After much anticipation, Australia's Henry Tax Review report was released today, along with the Australian Government's response. 

 

This taxmail provides a preliminary analysis with a New Zealand perspective in mind.  Given its importance and impact on both sides of the Tasman, Australia's corporate tax rate change seems likely to elicit some response from the New Zealand government. 

 

The report can be downloaded from www.taxreview.treasury.gov.au

and the Australian Government response is available at www.futuretax.gov.au

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In total, the Henry Tax Review made 138 recommendations, the majority of which were either rejected or parked for further consideration.

 

This taxmail outlines the key recommendations of the Henry Tax Review and the Australian.

 

Few of the Report's 138 recommendations have been formally adopted as yet.

 

The key changes announced by the Australian Federal Treasurer are:

  • introduction of a “Resource Super Profits Tax” on the non-renewable resources sector
  • reduction of the Australian company tax rate to 28% by 2014 (although the Henry Review recommended a 25% rate in the medium term)
  • increase in Australia's compulsory employee superannuation contributions from 9% to 12%, phased in over the rest of the decade
  • incentives for Small and Medium sized enterprises including faster access to the lower company tax rate and early asset write-offs.
  •  

    Other details will no doubt emerge with the Australian budget on 11 May 2010 and over time.

     

    It may not be in this year's Budget but within the short term to ensure our company tax rate remains competitive.  Australia's increasing savings and superannuation base will draw envious eyes from New Zealand where we have been looking to add depth to our capital markets and investment base. 

     

    Our Government’s response will be watched with some interest.

     

    KPMG Australia will be providing more detailed analysis of the Henry Review report and Australian Government approach and this will be available at www.kpmg.com/au

     

    If you have any questions on the above, please speak to your usual KPMG advisor or contact:

     

    John Cantin
    Partner - Tax
    KPMG
    Phone: +64 4 816 4518

    jfcantin@kpmg.co.nz

    Paul Dunne
    Partner - Tax
    KPMG
    Phone: +64 9 367 5991

    pfdunne@kpmg.co.nz

     

    Tony Joyce
    Partner - Tax
    KPMG
    Phone: +64 4 816 4512

    tjjoyce@kpmg.co.nz




 

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