Company tax cuts and KiwiSaver incentives welcome boost for private saving and business investment
Budget moves to reduce company tax rates to 30%, and tax-related incentives for New Zealanders to remain enrolled in the KiwiSaver scheme, will mean more future certainty for businesses and individuals, according to NZX.
Lowering the company tax rate on 1 April 2008 will free up capital for businesses to make investments in growth such as R&D, new plant, new market development, sustainable practices and, ultimately, jobs.
“The key to having great jobs in this country is having great companies to work for. The key to having great companies is keeping them competitive, and keeping them here,†said NZX CEO Mark Weldon.
NZX also deems the newly-announced KiwiSaver tax credits, and phased-in compulsory employer contributions, strongly encouraging.
“The $20 per week KiwiSaver personal tax credit sends a strong signal to New Zealanders that they can regain personal control of their future financial security – a concept that’s seemed out of the grasp of so many people until now,†said Weldon.
He said the matching tax credits for employer contributions will give businesses a competitive edge in attracting and retaining high value employees.
“There’s no doubt we’re swimming in a global talent pool. Now employers will be able to contribute to their employees’ savings in a low-cost, tax-efficient way, adding a degree of flexibility to structuring pay packages that will help them attract and keep the best people,†said Mr Weldon.
Increased IRD funding to strengthen auditing of property transactions also gets the nod from NZX.
“It’s a step in the right direction, although ultimately it is unlikely to re-balance the savings landscape and prevent speculative property investment from putting so much pressure on monetary policy, interest rates and the exchange rate,†said Weldon.
Lowering the company tax rate on 1 April 2008 will free up capital for businesses to make investments in growth such as R&D, new plant, new market development, sustainable practices and, ultimately, jobs.
“The key to having great jobs in this country is having great companies to work for. The key to having great companies is keeping them competitive, and keeping them here,†said NZX CEO Mark Weldon.
NZX also deems the newly-announced KiwiSaver tax credits, and phased-in compulsory employer contributions, strongly encouraging.
“The $20 per week KiwiSaver personal tax credit sends a strong signal to New Zealanders that they can regain personal control of their future financial security – a concept that’s seemed out of the grasp of so many people until now,†said Weldon.
He said the matching tax credits for employer contributions will give businesses a competitive edge in attracting and retaining high value employees.
“There’s no doubt we’re swimming in a global talent pool. Now employers will be able to contribute to their employees’ savings in a low-cost, tax-efficient way, adding a degree of flexibility to structuring pay packages that will help them attract and keep the best people,†said Mr Weldon.
Increased IRD funding to strengthen auditing of property transactions also gets the nod from NZX.
“It’s a step in the right direction, although ultimately it is unlikely to re-balance the savings landscape and prevent speculative property investment from putting so much pressure on monetary policy, interest rates and the exchange rate,†said Weldon.