Raising GST
Printed From: OHbaby!
Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=31534
Printed Date: 09 October 2025 at 4:26pm
Software Version: Web Wiz Forums 12.05 - http://www.webwizforums.com
Topic: Raising GST
Posted By: boys.boys.boys.boys
Subject: Raising GST
Date Posted: 10 February 2010 at 7:36am
|
I heard a rumour that GST is being raised, anyone know anymore about it, such as when and by how much???
TIA ------------- 4 boys!! 7 years, 5 years, 2 years and 8 weeks... |
Replies:
Posted By: kebakat
Date Posted: 10 February 2010 at 7:40am
|
http://www.stuff.co.nz/national/politics/3309760/4b-in-tax-cuts-coming - linky
I'm not impressed |
Posted By: lilfatty
Date Posted: 10 February 2010 at 7:41am
|
I didnt get the full story, but heard they are considering raising it to 15% but there was no time frame mentioned.
They seem to be cutting taxes to "help even things out" at the same time, but I need to look into that further, I only caught the end of the news between listening to Elmo songs with Issy. ------------- Mummy to Issy (3) and Elias (18 months) I did it .. 41 kgs gone! From flab to fab in under a year  http://www.femininefitness.co.nz/category/blog - LFs weight blog
|
Posted By: peanut butter
Date Posted: 10 February 2010 at 7:42am
| I dont think anything is final yet and I dont think much info was offered. GST might go up and taxes will come down but as to how and when....I think we need to wait. |
Posted By: caliandjack
Date Posted: 10 February 2010 at 7:52am
| Details will be announced in this years budget which is due out 20 May. |
Posted By: FreeSpirit
Date Posted: 10 February 2010 at 8:00am
|
Personally I feel that if they are going to raise it (which brings it in line with the GST in Oz) then they also need to look into removing GST from baby gear (which is how it is in Oz) to help families out. There is no way they will be able to force employers to raise wages by 2 and a half percent. ------------- http://www.babysfirstsite.com"> 
|
Posted By: MaeBeeBaby
Date Posted: 10 February 2010 at 8:15am
|
I agree FreeSpirit! And to remove GST from fruit and veges - again, just like Oz!!!
I got the impression it's going to be 15% from May IF they decide to do it. Seems the beneficiaries will be approx $5 a week better off tax-wise when/if the tax rate is reduced, but the big CEO's etc will be approx $1000 per week better off... What I DO like, however, is that the 'property kings' of NZ will have to start paying taxes on their properties instead of claiming back 'depreciation'. We personally know of one guy who claimed back $50k in 'depreciation' over a few years on his rental property, but when he sold the property he made a killing, so the IRD made him pay back the $50k!!! Good job I say!!! For me this will mean my job will be busier (I am a PA in one of the world's biggest real estate companies) cause more properties will be on the market as the Property Kings sell up, and in turn I will get an immense amount of satisfaction watching those who can't currently afford to buy a home (because of the inflated housing prices) be able to go and buy a home! So there ARE some good things in the upcoming budget - but as per usual it's all very controversial! |
Posted By: lilfatty
Date Posted: 10 February 2010 at 8:29am
Where are the proposed tax cut figures listed? I'd be quite interested to see how the proposed changes will affect my little family. I agree on taking GST off staple items such as fruit, veges, meat, bread and milk .. I however think everything else is fair game. People choose to have children, so I dont see why they should get a "tax break through no GST on baby items" .. food however is a necessity. ------------- Mummy to Issy (3) and Elias (18 months) I did it .. 41 kgs gone! From flab to fab in under a year http://www.femininefitness.co.nz/category/blog - LFs weight blog
|
MaebeeBaby wrote:Posted By: caliandjack
Date Posted: 10 February 2010 at 9:47am
|
The actual tax cuts haven't been disclosed yet, but speculation is the top tax rate will reduce from 38% to 33%, and 19% down to 15% I'll be interested to see where the cut off, as we don't get any assistance from the govt and our combined income is less than 100k. |
Posted By: kebakat
Date Posted: 10 February 2010 at 10:25am
I'm just gutted that food is going to go up even more. Its depressing seeing a few items that I have kept an eye on price wise for the last 8 months go up so much 
|
Posted By: GuestGuest
Date Posted: 10 February 2010 at 11:03am
How would you define "baby gear" though? I didn't realise Oz did that, I know they give families $3000 when they have a baby because they want to increase the population. Wages won't be increased by 2.5% just because there is a GST increase, however the proposed tax cuts are meant to offset the additional GST which means that theoretically no one should be worse off. In saying that people will still whinge. |
Posted By: MaeBeeBaby
Date Posted: 10 February 2010 at 11:22am
| LF, that's what I heard one of the analysers say on 'Good Morning' today, all proposed and not finalised of course... but the implications are well and truly there! |
Posted By: boys.boys.boys.boys
Date Posted: 10 February 2010 at 11:34am
|
STINK!!!!
i dont know much, but wouldnt it only increase the inflation rate, becuse if wages and GST go up, wont every other price have to be increased too, so we are all no better off, we just have to pay more for everything and work out GST at a different rate???... Oh, and in someways I hope that they dont adopt Australias rate, they have a huge list of things that dont have GST (like educational books and takeaways) and other things that do have GST (including eat in meals!) How confusing would all that be!! STINK!!! ------------- 4 boys!! 7 years, 5 years, 2 years and 8 weeks... |
Posted By: GuestGuest
Date Posted: 10 February 2010 at 12:19pm
| The Govt has to do something as the country is currently borrowing $250million per week! Come budget time that means spending will be cut and additional revenue will need to come from somewhere. There really aren't that many options available and we can't keep expecting the govt to stay at the status quo. We really need to think beyond the price of our groceries and look at the economy as a whole. |
Posted By: kebakat
Date Posted: 10 February 2010 at 12:37pm
I agree with that to a point, but the price of groceries does seriously affect some people. My groceries have gone up by about $50 for my shop buying the same things, we may just be able to absorb that, but not everyone can. My inlaws plus a friend of mine who are well in the top tax bracket don't think their taxes should be cut by that much even though they would seriously benefit from the proposed changes. |
Posted By: caliandjack
Date Posted: 10 February 2010 at 1:04pm
|
Agree with you on this one, all the benefits like wff and 20 hours free child care have to be paid from somewhere. I always think the only way to improve the economy is to make it easier to do business, and thus create jobs etc. I hope they don't take gst off some things and not others, its confusing enough to complete our gst return when its on everything. |
Posted By: WestiesGirl
Date Posted: 10 February 2010 at 5:16pm
[]
GST is 10% in Aus isnt it?? Hmm I didnt realise there was no GST on baby gear. I always thought it was included like with all other goods.
I agree as well. ------------- Our Angel July 08  Gone but not forgotten
And to complete our family, our princess has arrived 
|
Posted By: pepsi
Date Posted: 10 February 2010 at 5:34pm
|
John Campbell Interviewed John Key about it the other night..
http://www.3news.co.nz/Mixed-reactions-to-Keys-budget-preview/tabid/367/articleID/140950/Default.aspx - Video on demand link He guaranteed on air that if GST is increased, that this increase will be offset by an increase in income.. Campbo really pushed for this guarantee too! haha |
Posted By: Itchy_feet
Date Posted: 10 February 2010 at 5:45pm
|
Even if they do raise the GST to 15% I don't think prices will immediately be increased to compensate. If anything it will affect the margins of businesses as the majority of companies already have prices printed on items for the coming months and so are unlikely to want to print a whole lot of new tags and change all the systems.
For example something that is listed as $20 now includes $2.22 of GST so $17.78 actually goes profit to the company, whereas in a few months it will be $2.61 of GST and $17.39 of profit for the company. I doubt the company would put the price up to $20.45 which is what it would be at 15% gst keeping the $17.78 profit amount - does that make sense, sorry I'm rambling. Also on the matter regarding taking GST off certain things, this unfortunetaly seems a good idea but realistically this will create a lot more tax compliance costs for the company which they are more than likely to pass on by raising prices for the consumer. ------------- http://lilypie.com"> 
|
Posted By: pikelets
Date Posted: 10 February 2010 at 6:30pm
I don't know how the proposed tax cuts will offset the GST increase? Whats the point of doing it if there is no gain? We have just had our power bill increase, our daycare increased this week and now this. We are going to find it hard to find the extra $$ for here and there. ------------- http://lilypie.com"> 
3 Angels - Dec10 / Mar11 / Dec11
|
Posted By: clover
Date Posted: 11 February 2010 at 8:12am
I couldn't agree more with this comment |
Posted By: kellie
Date Posted: 11 February 2010 at 10:13am
I believe there will be a gain generated through visitors to the country. Tourists spend alot of money and won't be affected by tax cuts ------------- 
|
Posted By: GuestGuest
Date Posted: 11 February 2010 at 10:34am
Yes, plus there are many people not paying tax at all or not paying the correct amount of tax in NZ eg high earners who know all of the tax evasion tricks in the book. Therefore increasing the GST rate is meant to generate more revenue than what they would get from taxes as it is fairly difficult to get out of paying GST on your groceries. That's my take on it anyway. Plus I have heard media economists saying that the admin costs of recuping GST are less than that of PAYE but I'm not sure how. |