GRA Blogs

Articles by John Rowe

John Rowe

May 28 Budget: Summary at a Glance

Last week, Bill English delivered the first budget of the National Government.  In it, he confirmed the deferral of the planned personal tax cuts in 2010 and 2011. This came as no surprise to many.

We have outlined a very brief summary below of the main budget items which will have tax implications for many New Zealanders.

  • Personal tax cuts that came into effect from 1 April 2009 remain unchanged.
  • Revenue Minister, Peter Dunne announced that the KiwiSaver mortgage diversion facility is to be closed to new applicants from 1 June 2009.
  • Automatic contributions to the New Zealand Superannuation Fund (NZSF) have been suspended.  A contribution of $250 million will be made to the NZSF in 2009/10.
  • $323 million allocated to fit homes with insulation and clean heating devices.  More than 180,000 homes will be eligible for grants of up to $1,800.
  • Total of $3 billion allocated to improving health access and services between 2008/09 and 2012/13;
  • $1.3 billion in operating spending for education and $340 million in capital spending between 2008/09 and 2012/13.
  • $701 million in operating funding and $256 million in capital funding over the next four years across the justice sector.  This includes, Government spending to put 600 new police onto the streets by 2011 and to construct nearly 1,000 extra prison beds.
  • $1 billion over the next three years to be spent on roading.  Total spending is estimated at $10.7 billion over the next decade.
  • $258 million of new rail funding;
  • Up to $1.5 billion allocated to accelerate the roll-out of ultra-fast broadband; and
  • $114 million in operating spending and $17 million in capital spending for research, science and technology.

So what does this mean to you?

If you would like to discuss how these measures may affect you and your financial situation, please contact us.

John Rowe
Business Accounting Services
© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
Salesh - Was really good to see you yesterday and to see you getting up in front of the crowd talking about your huge successes – and….. I didn’t realise you were so young!  You are and always have been such an inspiration to us and think it is great that you got up in front of a group of eager property investors to share about your property journey and to inspire us!  You should do it more often. You are so knowledgeable about property investing and so experienced – you should share your success story! - Lisa Swanepoel - December 2017

Would you like to receive . .

. . tips, updates and useful information to help
protect your assets and grow your net worth?
Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.

  • How to find the right property
  • How to negotiate successfully.
  • Renovation do's & don'ts.
  • Property management.
  • Case studies and examples.
  • and much, much more..