UHY Haines Norton’s Head of Tax Jim Martin comments on the 2014 Budget. Jim Martin

Issued 19th MAY 2014

The 2014 Budget announced on 15th May 2014 has identical priorities to the 2013 Budget.  The four priorities are:

1.  Responsibly managing finances

2.  Building a more productive and competitive economy, including

  • Assistance for exporters
  • Raised tuition subsidies
  • Additional spend in the areas of Research, Science and Innovation
  • The introduction of new tax measures targeted at start-up companies undertaking research and development, black hole R&D expenditure, cheque duty and IRD audits

3.  Delivering better public services, including

  • The extension of parental leave
  • Increased parental tax credits
  • Increased spending on health and education

4.  Supporting the rebuild of Christchurch

The Government reported that:

  • The economy grew 3.1% last year
  • The Budget shows a return to fiscal surpluses
  • Forecast growth of between 2% and 4% over each of the next four years
  • The Budget forecasts an additional 170,000 people in work by mid-2018 compared with the December 2013 quarter, and the unemployment rate is expected to fall to 4.4%

To read the full commentary, click here.