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CAB Min (09) 18/2: Taxation (Budget Tax Measures) Bill: Approval for Introduction

Cabinet Minute CAB Min (09) 18/2: Taxation (Budget Tax Measures) Bill: Approval for Introduction - 25 May 2009 - Budget 2009 Information Release - The Treasury
     
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Cabinet 
CAB Min (09) 18/2 
Copy No: 
Minute of Decision 
 
This document contains information for the New Zealand Cabinet. It must be treated in confidence and 
handled in accordance with any security classification, or other endorsement. The information can only be 
released, including under the Official Information Act 1982, by persons with the appropriate authority. 
Taxation (Budget Tax Measures) Bill:  Approval for Introduction 
Portfolios:  Finance / Revenue 
 
On 25 May 2009, Cabinet: 
 
1
 
noted that the Taxation (Budget Tax Measures) Bill has no priority on the Legislation 
Programme; 
2
 
noted that on 6 April 2009 Cabinet agreed to delay the second and third tranches of the 
planned tax cuts in 2010 and 2011 [CAB Min (09) 12/9]; 
3
 
agreed that tax legislation be amended to retain the tax structure from 1 April 2009 into 
subsequent years (this would include consequential amendments that would be necessary to 
implement the new structure): 
$0 - $14,000 
12.5 per cent 
$14,001 - $48,000 
21.0 per cent 
$48,001 - $70,000 
33 per cent 
$70,001+ 
38 per cent 
 
4
 
noted that in December 2008, Cabinet agreed that the weekly independent earner tax credit 
would increase from 1 April 2010 [CAB Min (08) 45/2]; 
5
 
agreed that tax legislation be amended to retain the amount of the independent earner tax 
credit from 1 April 2009 into subsequent years, being $10 per week or $520 per year for the 
tax year (available to persons with taxable income between $24,000 and $44,000 per 
annum); 
6
 
noted that officials’ reports on resident withholding tax and portfolio investment entity rate 
structures, the tax rate for Maori authorities, and a new bottom rate for secondary 
employment income and extra pays (as set out in CAB Min (08) 45/2) will take into 
consideration the decisions in paragraphs 3 and 5 above; 
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