Tag: Tax System

Credit Arrears on The Rise

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There is a growing concern as more households appear to be struggling to keep up with debt payments. A report from credit bureau Centrix indicates that 11.9% of Kiwis were in arrears as of January, the highest level seen in four years. This amounts to about 430,000 people, up by…

New Zealand Property Market Faces Decline

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Figures from Quotable Value (QV) show that the average price of a New Zealand home has fallen by an estimated $10,000 a month. The QV House Price Index indicates that property values fell by $10,006 between December last year to January 2023. Prices also fell by $129,004 from January 2022…

Government Announces Draft Plan To Tax Agricultural Emissions

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New Zealand’s Ministries of Agriculture, Climate Change and Environment have released a draft plan that will guide pricing on agriculture emissions that come from belching cattle and sheep. This plan will see New Zealand become the first country in the world to have farmers pay for the emissions that come…

Highlights from Budget 2022

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Budget 2022 is unlikely to elicit much excitement from the tax community as no new taxes or amendments to the income tax thresholds were announced despite some calls to do so. Rather, the government has opted to provide Kiwis with a temporary stimulus targeted at low to middle-income households. This…

Annual Inflation Rate in NZ Reaches 30-Year High

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Recently released figures by Statistics New Zealand confirm that inflation reached a record-setting level of 5.9% by the close of 2021. This increase was driven by rising consumer prices, as construction costs, petrol and rents recorded a sharp upsurge in the final quarter of the year. Though disappointing, this outcome…

CCCFA Changes Make Accessing Credit Difficult

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Borrowers are facing additional challenges when it comes to accessing credit following the implementation of changes made to the Credit Contracts and Consumer Finance Act (CCCFA). The changes were made in 2019 to institute better protections for borrowers against spiralling costs of debt and came into effect from December 1.…

NZ Wage Levels Rise As Signs Of Labour Shortage Emerge

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According to Infometrics, New Zealand wages are on the rise across the board. During the last 12 months leading up to November 2021, the average salary per filled job increased by 7.6%, with the national average salary rising by 9.6%. This represents a 20-year high. Infometrics principal economist, Brad Olsen,…

NZ Property Market Closes 2021 On a High Note

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Aotearoa’s red hot property market closed out 2021 at peak levels. Although there were prospects of the market cooling following plans to increase interest rates, tighten bank lending criteria, and new tax policy restrictions, the market appears to still be on the rise. CoreLogic’s House Price Index (HPI) found that…

Strong Economic Growth in NZ Over Next 5 Years

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New Zealand Finance minister, Grant Robertson, recently gave a summary of the Treasury’s Half Year Economic and Fiscal Update 2020 report. The report indicates that the economy is expected to bounce back in the coming years following depressed performance since the pandemic started. The report has projected that unemployment will…

NZ Government Shifts on Excise Tax

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New proposals have been presented under the Smoke-free Aotearoa 2025 Action Plan document to combat tobacco smoking in New Zealand. The NZ government has for years relied on increased excise taxes to help discourage smoking. The intention had been for smokers to see the rising cost and opt to curtail…