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128 Riccarton Road
Christchurch
New Zealand
Ph: (03) 341 2013
Fax (03) 341 2016
0800 650 585 (outside Christchurch)
    

Budget 2011

Working for Families

Lower-income families will be largely unaffected by these changes, the majority will actually get an increase in their Working for Families payments.

As a result of Budget 2011, Working for Families will be altered over time so that the scheme has:
  • A slightly lower abatement threshold of $35,000 and a slightly higher abatement rate of 25 cents in the dollar, compared to the current 20 cents in the dollar
  • An alignment between the Family Tax Credit payments for children aged 16 years and over and the Family Tax Credit payments for those aged 13 to 15

Kiwisaver

From 2013 the minimum employee and employer contributions will increase from 2% to 3%. The Employer Super Contribution tax will now apply to everyone.

The kick start of $1,000 is unchanged.

The government contribution has been cut in half, from $20 a week to $10 a week.

Student Loans

Tighter restrictions on borrowing through student loans:
  • Those in default of their student loans payments
  • People aged over 55 will only be able to borrow course fees
  • Part time students will not be able to borrow course-related costs
Shortening the repayment holiday for overseas based borrowers from 3 years to 1 year.

Taxation and new initiatives

Some tax-related measures in the Budget are:
  • A review of the tax treatment of assets which are used for partly business and partly private purposes 
  • Alterations to the current option which allows farmers to switch between livestock valuation methods 
  • The creation of a Canterbury Earthquake Kiwi Bond 

If you have any questions on how these changes could affect you please contact us on 341 2013.

To read a full version of the 2011 Budget click here.


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Our location - 128 Riccarton Road, PO Box 8535 Riccarton, Christchurch.