Page 33 Advertisements Column 1

Press, 14 September 1988, Page 33

Tax Changes: The Facts. J . ’ There’s been a lot of confusion about the coming tax changes What’s happening on 1 October (and what s already and chances are you’re wondering exactly what’s going on. (Not happened) to mention precisely what’s in it for you.) Personal tax rates come down on 1 October. You’ll pay Over the next few weeks well be telling you in detail about 24 percent up to $30,875 and 33 percent thereafter, the changes we’ve made, but here’s the basic story: ... , s 2. A Low Income Earner Rebate will make sure that if you earn $9,500 or less, you’ll continue to effectively pay Old system riddled with loopholes 15 percent tax. If you earn more than $9,500 your Low Income Earner Rebate will reduce by 4 cents for every Our old tax system was riddled with loopholes. It didnt additional dollar you earn up to $30,875. catch the very rich - those who could most afford to pay. Some of . New Zealand’s biggest companies haven’t paid a cent towards the 3. Family Support will be increased for those most m need running of our country for years. from 1 October. Who’s been paying their share? You have. You and the many 4. Company tax was lowered from 48 percent to 28 percent on small companies who don’t have access to high-powered tax 1 April. planners. i oop h o les for rich companies and individuals have been closed. A fairer system g, Superannuation contributions will now be taxed — just like We’re turning the tax system on its head and making it any other savings plan - but payouts will become tax-free a whole lot fairer. Forcing the wealthy freeloaders to cough up so from 1 April 1990. we can give relief to those who need it most. Double taxation of investments has been removed. (This is Most of the changes will happen on 1 October. Sqxne are what’s meant by imputation.) already in plac incomes of superannuitants will be protected by the new tax laws. The Big Winners q Stamp duty on house sales, shares and other security Ordinary Kiwi Taxpayers. Most of you will pay less tax from transactions was abolished on 17 March. 1 October. But more importantly, as you move up through the Changes to the international tax laws give companies an income levels, lower tax rates will let you keep more of every dollar 10. Chmiges to tte Internationa you earn. Families. The more needy your situation, the more your What’s NOT happening Family Support will go up. GST has not been increased. Thxpaying Businesses. You may have noticed your tax rate Charities are not being taxed, is already 40 percent lower than this time last year. In April we Honest provisional taxpayers are not being penalised, introduced one of the world’s lowest company tax rates, to give — -- . you an incentive to increase jobs and invest m new equipment. f"p O st to: Tax Changes, P.O. Box 6364 Te Aro, Wellington. Investors and Savers. Your dividends will no longer be taxed | Please send me more information on n I twice. Enjoy the bonus. " I Personal Tax Changes □ Company Tax Changes Dj Home Buyers. The Stamp Duty, which added around $1,600 | Name — — I to the average cost of buying a house, has been removed. I Addregs | The Big Losers I . ' j Rich Tax Avoiders. Now the game’s up. Loopholes have been j Zealand Government closed. This year youwill experience the novelty of paying tax, I Office of the Minister of Revenue instead of relying on ordinary folk to pay your share. L- — Tax rates are coming down. .■ ■ . ■ ■ ‘ - X ' ■ .u/ -J ' < DDB Needham/GTIGA