(PR.co.nz) New Zealand’s new 28 per cent company tax rate from next year will make this country more competitive internationally – and particularly with Australia, Finance Minister Bill English says.
He was responding to news today that Australia will restrict planned cuts to its headline company tax rate to 29 per cent from 2013/14, deferring any further reduction until fiscal conditions permit.
“Taken together with other measures in the Budget, the reduction in New Zealand’s company tax rate to 28 per cent from the 2011/12 income year will help our competitive position and help provide businesses with the right incentives to invest and export,” Mr English says.
“It is significant that from next year New Zealand’s company tax rate will be two cents in the dollar below Australia’s for two years and then one cent lower. That hasn’t happened for many years.
“New Zealand’s Budget tax package is unique. We have been able to change the tax mix, including significant income and company tax cuts, at a time when many other countries are increasing taxes to tackle rising debt and snowballing deficits.
“The Government will continue with its programme of policies that tilt the economy away from spending, borrowing and unsustainable increases in government spending, and towards saving, exporting and investment in productive parts of the economy.”
Media Release 2 July 2010 from Hon Bill English, Minister of Finance.