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Snippets - Budget 2012

What else did the budget hold for business?

Author: Alex Mitchell

We summarise below what else was in the Budget that may be of interest to business.

 

Other Budget Announcements
Additional Inland Revenue
audit activity
An extra $78.4 million over the next four years for Inland Revenue, to bolster tax compliance activities.
R&D No R&D tax credit regime, but $250 million of new operating funding and $76.1 million in capital funding over four years for science, innovation and research.
Student loans Increasing the student loan repayment rate from 10%to 12%, saving $184.2 million over the next four years, and repealing the voluntary repayment scheme (saving $43.5 million over four years). The Government will also remove eligibility for student allowances for postgraduate study (saving $12.7 million over four years), and broaden the definition of income for student loan repayment purposes to make this in line with what is “income” for working for families purposes.
Tobacco excise tax Increasing tobacco excise by 10% a year on 1 January in each of the next four years ($528 million over four years). This will increase the price of an average pack of 20 cigarettes to more than $20 by 2016.
KiwiSaver The Government is deferring proceeding with KiwiSaver auto enrolment in 2014-15, but has said it will still go ahead with this when it has sufficient surpluses to meet the forecast cost (up to $514 million over four years).
Future Investment Fund The Future Investment Fund will invest the $5 billion to $7 billion of proceeds from the partial share sales of four SOEs and Air New Zealand. Budget 2012 allocates $559 million of this.

Budget 2012 Analysis

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