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Table 1 - Fiscal impact of the tax changes
Table 1 - Fiscal impact of the tax changes
| $ million (rounded to nearest $5m) |
Increase (decrease) in operating balance |
| 2010/11 |
2011/12 |
2012/13 |
2013/14 |
4-yr total |
| Personal tax rate cuts |
(2,455) |
(3,685) |
(3,935) |
(4,255) |
(14,330) |
| Compensation for GST rate increase |
(420) |
(585) |
(610) |
(620) |
(2,235) |
| Company tax cut to 28% |
(20) |
(340) |
(450) |
(305) |
(1,115) |
| PIEs & savings vehicles capped at 28% |
(15) |
(40) |
(55) |
(60) |
(170) |
| Administration associated with tax package |
(10) |
- |
- |
- |
(10) |
| Sub-total of negative impacts on the operating balance |
(2,920) |
(4,650) |
(5,050) |
(5,240) |
(17,860) |
| GST rate increase |
2,040 |
2,840 |
2,985 |
3,160 |
11,025 |
| Non-compensatory Working for Families changes |
5 |
40 |
75 |
65 |
185 |
| Depreciation measures |
140 |
935 |
1,000 |
1,045 |
3,120 |
| LAQC changes |
- |
70 |
65 |
55 |
190 |
| Thin capitalisation 60% threshold |
- |
200 |
200 |
200 |
600 |
| GST base changes |
15 |
60 |
60 |
60 |
195 |
| Tobacco excise rate increases |
135 |
180 |
210 |
190 |
715 |
| Increased audit and compliance activity (net revenue) |
120 |
210 |
210 |
205 |
745 |
| Sub-total of positive impacts on the operating balance |
2,455 |
4,535 |
4,805 |
4,980 |
16,775 |
| Sub-total of estimated static impact |
(465) |
(115) |
(245) |
(260) |
(1,085) |
| Adjustment for macroeconomic effects |
5 |
25 |
205 |
435 |
670 |
| Total impact on operating balance |
(460) |
(90) |
(40) |
175 |
(415) |
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