Current Tax Expenditures
The following sections list tax expenditures drawn from both the Income Tax Act 2007 and the Good and Services Act 1985. Appropriated cash payments (spending) made through the tax system, e.g. Working for Families tax credits, have also been included in the final part of the list. Cash payments made through the tax system do not formally meet a tax expenditure definition, but have been included for transparency purposes.
A small sub-section of tax expenditures with readily accessible data has been quantified (refer table 2). The government does not collect data on all tax expenditures as the compliance cost of collecting additional data is, in some instances, considered prohibitive. While work quantifying tax expenditures will continue, many tax expenditures may not be able to be quantified.
| Quantified tax expenditures |
Value of expenditure 2009/10 (estimated actual) |
Value of expenditure 2010/11 (forecast) |
|---|---|---|
| Housekeeping tax credit | $13 million | $13 million |
| Child taxpayer credit | $16 million | $15 million |
| Juror's and witnesses' fees -- exemption | $2 million | $2 million |
| Charitable or other public benefits: tax credit | $198 million | $198 million |
| Tax credit for transitional circumstances | $8 million | $7 million |
| Redundancy tax credit | $17 million | $17 million |
| Independent earner tax credit | $155 million | $155 million |
| Note: measured in March tax years | ||
| Appropriated spending through the tax system |
Value of expenditure 2009/10 (estimated actual) |
Value of expenditure 2010/11 (forecast) |
| Child tax credit | $4 million | $3 million |
| Family tax credits | $2,159 million | $2,204 million |
| In-work tax credits | $595 million | $592 million |
| KiwiSaver tax credits | $1,025 million | $1,039 million |
| Parental tax credits | $21 million | $19 million |
| Minimum Family tax credit | $9 million | $10 million |
| Note: These credits are appropriated and are measured over the financial year. | ||
