Tax reforms will do what is best for New Zealand
02 May 2010 1 CommentThe Australian Government's review of its tax system reinforces the value of New Zealand completing a broad review of its own tax system over the past year, Finance Minister Bill English says.
Australia today confirmed several changes to taxes on infrastructure, companies and superannuation funds.
"It was always on the cards that Australia's Henry Review would recommend a number of changes to its tax system," Mr English says. "It reinforces the value of us going through a similar process here over the past 12 months or so, as part of a broad review of our tax system.
"We'll be doing what is best for New Zealand and the New Zealand economy.
"A balanced package of tax reforms will be part of the Budget on 20 May. As I've said before, it will provide the right incentives for hard-working Kiwis to get ahead under their own steam - and it will make the system fairer, more sustainable and more supporting of economic growth.
"It's important that our tax system generally remains competitive with other countries - particularly Australia, given our close economic and trade ties with our Trans-Tasman neighbours."
"The Government will set out details of its tax package in the Budget later this month and I don't want to pre-empt that process today."
But it's now clear the Australian Labour Government's approach to tax contrasts starkly with the New Zealand Labour Party's reckless twin pillars of higher income taxes and billions of dollars more debt, Mr English says.
"This is very telling. Phil Goff's old-fashioned recipe of borrow and hope, tax and spend, would see New Zealand's debt spiral out of control - mortgaging our families' futures to pay the bills.
"He is not only out of step with the Australian Government, but he clearly does not realise the whole world has changed," Mr English says
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