Budget 2010: GST and superannuation – what you would get

National believes that lower personal taxes across the board are a good thing. We want to give people incentives to work hard, improve their skills, and get ahead here in New Zealand.

To do this, we need to change the mix of taxes. Any tax switch involving cutting personal taxes across the board and raising GST to 15 per cent would leave the vast bulk of New Zealanders better off.

For New Zealanders on national superannuation, an increase in GST would be accompanied by immediate compensation for the one-off impact of higher GST. This would happen on the day of any GST increase.

To offset other ongoing price increases, the usual annual inflation adjustments will also be made to superannuation rates, so that superannuitants’ spending power is preserved.

In addition, across the board personal income tax cuts would increase the amount of superannuation that people receive in the hand.

Our tax package will be broadly cost neutral, with a focus on fairness. We’re committed to protecting the most vulnerable, while improving New Zealand’s long-term prospects.

For more information visit: http://www.beehive.govt.nz/speech/speech+wellington+regional+chamber+commerce+3