colinrealestate

Finance Minister, Bill English, turned more than a few heads recently with comments made in advance of the 20th May Budget. In short, he flew the flag that there will be tax cuts across the board but an increase to 15% on GST.
The Minister noted that any tax switch involving cutting personal taxes across the board and raising GST to 15% would leave the vast bulk of New Zealanders better off. He said that any increase in GST would be accompanied by immediate compensation for low and middle income earners, beneficiaries, superannuitants and people receiving Working for Families. Additional regular adjustments for other ongoing inflationary pressures would be provided as usual. In addition, under the tax package being considered, superannuitants and people on lower wages would also receive income tax cuts.
Coupled with Reserve Bank Governor, Dr Allan Bollard’s decision to both leave the OCR at a low 2.5% and flag a much later lift in interest rates while our contacts at the ANZ Bank believe any increase in OCR rates will probably be limited to four 0.25% rises before settling
So, perhaps we can begin to feel the end of the tight world we have endured is in sight.

Filed under: REAL ESTATE | Tagged: Real Estate