Tax reforms assure financial security

Tax reforms assure-John Key.jpgNational is focused on lifting New Zealand’s long-term economic growth.

We are working hard to provide all New Zealanders, including our Indian Community with the financial security, opportunities, and higher incomes that allow them to get ahead in this country.

Budget 2010 builds on the recovery of our economy, and delivers the brighter future National campaigned on in the 2008 election.

We are also taking many positive steps. This year’s Budget lowers personal tax rates across the board to encourage people to get ahead under their own steam, and to keep more skilled workers in New Zealand.

We are making worthwhile and overdue improvements to our tax system.

We are making it fairer, and tilting the economy towards savings, exports, and productive investment.

This will help to rebalance the economy.

We also taking a responsible approach to manage Government finances, turn back rising debt, and move back to surplus sooner.

Our tax package is the biggest reform of the tax system in nearly 25 years.

From October 2010, personal taxes will be cut across the board and GST will rise to 15%. At the same time, NZ Superannuation, Working for Families and benefit payments will increase by 2.02% to compensate for the rise in GST.

Even after the rise in GST, a majority of New Zealanders will have extra cash in their pockets. As promised, the bulk of New Zealand households will be better off.

The changes will boost economic growth, make the tax rules fairer, and help hard-working New Zealanders get ahead.

Our tax package includes changes to property taxes to encourage productive investment and exports. These changes affect how landlords pay tax on rental properties. They do not affect those who live in their own homes. Changes include tightening up on loss attributing qualifying companies (LAQCs), and ending the ability to claim depreciation on buildings with a life of 50 years or more.

Budget 2010 also focuses on improving frontline public services.

We are continuing to invest in better frontline services, such as hospitals and schools.

Health is the biggest single item of new operating spending in Budget 2010 – up $512 million to $13.5 billion in 2010-11.

We are delivering on our promise to provide better, sooner, more convenient healthcare to all New Zealanders.

We are also investing a further $1.4 billion in education over the next four years for better schooling and early childhood education.

We boosting investment in science and innovation by $321 million over four years and spending almost $250 million on our flagship broadband initiatives to help create jobs and grow our economy.

By focusing on faster and more sustainable economic growth, Budget 2010 will help create jobs, boost incomes, raise living standards, and provide world-class public services for you and your family.

John Key is Prime Minister of New Zealand. The above article is exclusive to Indian Newslink ©

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