WELLINGTON - New Zealand's credit rating has been downgraded by by Fitch Ratings from AA+ to AA, with high debt levels being cited as the primary reason. On September 30th the international credit rating agency Fitch Ratings announced that it has cut New Zealand’s credit rating from AA+ to AA. World markets immediately reacted to the news, with the New Zealand Dollar falling to a six month low and yields on New Zealand 10 year notes rising by 2 basis points. New Zealand’s ... Read More

Taxes are coming under the spotlight in New Zealand, as the recovery bills following the country’s recent earthquakes are revised upwards. The possibility of a temporary earthquake relief tax is back on the table in New Zealand, as the costs of rebuilding private housing alone in the quake struck areas alone are revised from NZD 4 billion to NZD 7.1 billion. On August 30th the Finance Minister of New Zealand Bill English revealed the newly recalculated costs for the New Zealand earthquakes, saying ... Read More

New Zealand has seen its highest annual inflation rate in over two decades, with tax increases being the major factor of the negative impact on the economy. In a press release issued on July 18th Statistics New Zealand confirmed that the prices of everyday items are rising faster than in recent years. According to data contained in the release, New Zealand’s annual inflation rate has hit 5.3 percent, which is the highest level seen in the country during the last 21 years. Approximately ... Read More

Australia and New Zealand are looking set to cooperate on the issue of emissions taxation, despite the continuously escalating debates about the tax in Australia. On June 20th the Prime Minister of Australia Julia Gillard and the Prime Minister of New Zealand John Key spoke at a joint press conference in Canberra, announcing that the two countries are set to work together in an effort to form a cooperative emissions trading scheme. Julia Gillard and John Key explained that the economies of Australia ... Read More

Inefficiencies in New Zealand’s tax system played a major contributing factor to the stall in the country’s economic growth last year, and several changes need to be carried out in order to correct the situation. The Organization of Economic Cooperation and Development (OECD) has completed its annual Economic Survey of New Zealand, advising that the country needs to instate a capital gains tax and overhaul the tax system to encourage savings and investments in sectors of the economy, other than property. The new report ... Read More