Current Tax Expenditures
The following sections list tax expenditures drawn from both the Income Tax Act 2007 and the Goods 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 2010/11 (estimated actual) |
Value of expenditure 2011/12 (forecast) |
|---|---|---|
| Housekeeping tax credit | $14 million | $14 million |
| Child taxpayer credit | $14 million | $14 million |
| Charitable or other public benefits: tax credit | $198 million | $200 million |
| Tax credit for transitional circumstances | $8 million | $7 million |
| Redundancy tax credit | $12 million | $6 million |
| Independent earner tax credit | $194 million | $194 million |
| Note: measured in March tax years | ||
| Appropriated spending through the tax system | Value of expenditure 2010/11 (estimated actual) |
Value of expenditure 2011/12 (forecast) |
| Child tax credit | $3 million | $2 million |
| Family tax credits | $2,177 million | $2,161 million |
| In-work tax credits | $585 million | $568 million |
| KiwiSaver subsidy | $1,037 million | $701 million |
| Parental tax credits | $19 million | $18 million |
| Minimum Family tax credit | $9 million | $11 million |
| Note: These credits are appropriated and are measured over the financial year. | ||
