2010 New Zealand budget

2010 (2010) New Zealand budget
Submitted byBill English
ParliamentParliament of New Zealand
PartyNational
Total revenueIncrease $56.4 billion[1]
Total expendituresIncrease $64.8 billion[1]
DeficitDecrease -$6.9 billion[1]
DebtDecrease $26.6 billion (Net)[1]
Decrease 14.1% (Net debt to GDP)[1]
ǂNumbers in italics are projections.
‹ 2009
2011›

The New Zealand budget for fiscal year 2010-2011 was presented to the New Zealand House of Representatives by Finance Minister Bill English on 20 May 2010.[2]

This was the second budget Bill English has presented as Minister of Finance.

Outline

Tax changes

The main feature of the 2010 Budget[3] was a tax package that lowered income taxes, reduced the company tax rate to 28%, and raised GST to 15%. There were increases to Superannuation, Working for Families and Benefits to compensate for the GST increase.

New income tax rates from 2010 are:[4]

Taxable income band Old PAYE
(1 April 2010  – 30 September 2010) 		New PAYE
(from 1 October 2010)
$0  – $14,000 12.5% 10.5%
$14,001  – $48,000 21% 17.5%
$48,0001  – $70,000 33% 30%
$70,001+ 38% 33%

Depreciation on buildings with a life exceeding 50 years was removed, resulting in an increase of tax paid on property, and Loss Attributing Qualifying Companies were abolished and replaced with Look-through company, subject to much tighter rules.

The 2010 Budget included new spending of $1.8 billion in health, education, research and broadband rollout.

The Budget forecast a return to fiscal surplus in 2016.

References

  1. ^ a b c d e "Minister's Executive Summary" (PDF). New Zealand Treasury. 20 May 2010. Archived from the original (PDF) on 17 June 2016. Retrieved 20 March 2015.
  2. ^ "Budget 2010". New Zealand Treasury. 20 May 2010. Retrieved 18 March 2015.
  3. ^ "Budget 2010 home page". The Beehive. 20 May 2010. Retrieved 18 March 2015.
  4. ^ "Personal tax cuts". Inland Revenue Department. 1 October 2010. Archived from the original on 29 January 2019. Retrieved 18 March 2015.