April 1 is the date for the implementation of Tax Cuts. This was a major plank in the National parties election manifesto. There now seems to be a large number of low income earners who will get no tax cuts and may even face tax increases (perhaps 65%). The tax cuts are aimed at middle and high income earners and are meant to stimulate the economy.
Where area we headed?
Well the new National government has withdrawn the proposal for local tax on petrol to cover the cost up grading the Auckland Rail System. The alternative is a national petrol tax across the whole country with all tax payers paying for the Auckland rail up grades and some of the additional petrol tax being used for road and highway development. For the first time since they were elected there has been an undercurrent of dissatisfaction from the public of this proposal. Is the “Honey Moon” over?
Making overseas investment easier is also a target for the new National government. They are planning to make it easier for overseas investors to invest in New Zealand. Is this a subtle way of privation or selling off more of our assets? New Zealand has learnt the hard way from previous experience and it would seem foolish to charge of down the same road again. New Zealanders need to monitor this situation and make submissions when they are called for.
Stay awake New Zealand don’t be too trusting and suffer the consequences in the long term.