New Zealand Sees $1.8 Billion Surplus

October 14, 2016 Taxation in New Zealand

Tax revenue in New ZealandWELLINGTON – An unexpected surplus in New Zealand has bought the idea of tax cuts back to the table.

On October 14th the government of New Zealand announced that over the year ending June 2016 the country saw a surplus of NZD 1.8 billion, as tax revenues rose above expectation while expenses were lower than previously forecast.

The government showed that over the 12 months Core Crown Tax Revenues grew by NZD 3.8 billion compared to last year, while Core Crown Expenses grew by a comparatively smaller NZD 1.6 billion.

While announcing the surplus the Minister of Revenue Bill English indicated that reducing sovereign debt was the primary goal for the government, but indicated that the newly found revenues also open up some extra spending opportunities which were not previously realistic.

He also indicated that tax cuts remained to be a possibility in the near future, although refused to commit to any specific timelines or details.

The news of the tax revenues and potential tax cuts was met with trepidation from some experts who suggested that the extra funds should be spent on social investment and support programs.