Finance Minister Bill English has welcomed Australia's announcement of plans to defer a cut in its corporate tax rate as making New Zealand’s new 28 per cent company tax rate more competitive from next year.
“Taken together with other measures in the Budget, the reduction in New Zealand’s company tax rate to 28 per cent from the 2011/12 income year will help our competitive position and help provide businesses with the right incentives to invest and export,” English said.
“It is significant that from next year New Zealand’s company tax rate will be two cents in the dollar below Australia’s for two years and then one cent lower. That hasn’t happened for many years," he said.
“The Government will continue with its programme of policies that tilt the economy away from spending, borrowing and unsustainable increases in government spending, and towards saving, exporting and investment in productive parts of the economy.”
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