NOTE: Please do not add meaningless posts to this thread. Try to keep it factual please!!
I know that we have been living beond our means. That there was some cost cutting needed to get things to balance. After all, Labour made us all beneficiaries (think Family Tax Credit, 20h free childcare and more).
I was trying to look for somewhere where I could easily find all the changes National had already done. But I failed. So I thought, that as KB is such a diverse community, where better to get all the facts?
So I will here start off with what I already know has been done:
( I also have some inside info re other changes that currenty are "at discussion stage", but I will not here add anything that is not in place already)
1. The easy one: GST will increase from 12.5% to 15% in October.
2. The Earners' Account Levy (paid by all employees and self employed to cover their non-work, non-motor vehicle injuries) increased from $1.70 to $2.00 (including GST) per $100 of liable earnings from 1 April 2010.
3. The average composite employer and self-employed levy increased from $1.31 to $1.47 per $100 of payroll from 1 April 2010. This levy excludes GST and is an average rate. Individual rates for industry groups may be higher or lower.
4. ACC petrol levy was increased from 9.34 cents per litre to 9.90 cents per litre from 1 July 2009.
5. Licensing fee increases for motorvehicles from 1 July 2010 (full year fee)
Passenger car
.................................................. ............................................Old fee ..New fee
Petrol driven - private $?.??? $281.61 Petrol driven - taxi $338.11 Petrol driven - rental $338.11 Non-petrol driven - private $408.65 Non-petrol driven - taxi $465.14 Non-petrol driven - rental $465.14 Trailer Less than 3500kg $35.12 Motorcycle
Moped .................................................. ................................ $130.00 $170.00
Petrol driven - less than 61cc $394.38 Petrol driven - 61-600cc $405.63 Petrol driven - 601cc and over $321.24 $517.25 Goods truck/van/utility Private passenger Petrol driven - 1-3500kg GVM $326.26 Petrol driven - 3501-6000kg GVM $327.76 Non-petrol driven - 1-3500kg GVM $583.81 Non-petrol driven - 3501-6000kg GVM $585.30 Transport licensed goods Petrol driven - 6000-12000kg GVM $382.76 Non-petrol driven - 6000-12000kg GVM $640.31 Other (standard) goods Petrol driven - 1-3500kg GVM $326.26 Petrol driven - 3501-6000kg GVM $327.76 Non-petrol driven - 1-3500kg GVM $583.81 Non-petrol driven - 3501-6000kg GVM $?.?? $585.30
NOTE: If someone has the old licensing fees, please PM me and I will insert here (a nightmare, but will sort it...)
5. Childcare subsidies to centres. From 1 February 2011 there will me major changes in the way Childcares are funded by Ministery of Education. I won't get too deep in to this as it is a complicated thingy. But here the main ones:
- Childcares are currently funded based on how many qualified teachers they have on the floor. There is a formula that means 100% of available funding. To achieve this you need a full quota of qualified staff. (Does not mean all staff are qualified)
- From 1 Feb 2011 there will be no additional funding above 80% of that quota being qualified. This means that all childcare centres that have worked hard to achieve that 100% mark will have qualified staff that cost more but will give no additional funding, meaning losses.
- From 1 February 2011 the current 80% threshold funding will be reduced. National is yet to tell us what the new 80% funding will be. But the indication is that there will be no incentive to have a higher quota of qualified than 50% as the financial benefit will be zero.
All this means lower quality of childcare as qualified ECE teachers will not be employed. A little like saying that your kids will be cared for at schools by unqualified teachers...
6. Tax cuts.
Here's what the personal tax cuts from October are:
- Income up to $14,000 will be taxed at 10.5%, down from the current 12.5%
- Tax on income from $14,001 to $48,000 will be 17.5%, down from 21%
- Income from $48,001 to $70,000 will be taxed at 30%, down from the current 33%
- The top tax rate, on income over $70,000 will be cut to 33% from 38%
7. ETS. From 1 July 2010
It estimates households will pay about $3 more a week or $165 a year, based on increases of 3.5 cents a litre for petrol and about 1.5c per kilowatt hour for electricity
- Petrol went up 3 - 4c/litre depending on stations.
- Contact said the ETS would result in an average residential price rise for its customers of 3.2 percent. For an average residential customer this works out at around $62.37 for electricity and $21.87 for gas per annum.
I did read that power would go up approx 5%. For me that means around $150/year.
8. Company Tax rate
From 1 April 2011 the company tax rate will be lowered from current 30% to 28%.
9. Resident Witholding Tax (Tax on interest on your savings)
From 1 April 2010 the RWT is aligned with your Income tax. This means that instead of a static 19.5% RWT you will now pay the same amount on your interest earned as on your income.
10. Preventing those with rental losses (from rental properties) from using the losses to access family assistance (Working for Families tax credits) and other benefits. From 1 April 2011, such losses will no longer be offsetable when calculating entitlements to benefits.
Please add what you know about and I have not here already posted.
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