The Minister of Finance presented the Budget for 2015/2016 to Parliament on 21 May 2015. The Budget 2015/2016 deals only with domestic tax issues.
The Budget contains the following proposals:
- Strengthening the tax rules applicable to property transactions;
- Provision of funding for the establishment of privately-led Regional Research Institutes, located outside Auckland, Wellington and Christchurch;
- Added funding of R&D growth grants available to innovative businesses;
- Exclusion of the NZD 1,000 incentive to join Kiwi Saver;
- Reduction in ACC levies (the rates to be set following consultation);
- Clarification stating that payments made by the Ministry of Social Development to social housing providers for the provision of social housing are exempt from goods and services tax;
- Introduction of a Border Clearance Levy to fund Biosecurity and customs border control. The levy will be set at NZD 16 on arriving passengers and NZD 6 on departing passengers;
- Changes to the amount of the working-for-families tax credit from 1 April;
- Families earning less than NZD 36,350 per year will receive an increase of NZD 12.50 per week, whereas those with incomes over NZD 88,000 per year will receive NZD 3.00 per week less on average. Some very low-income families will receive an additional NZD 24.50 per week; and
- Increase in the unemployment benefit for families with children of NZD 25 per week, effective 1 April 2016.
