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Budget 2016 Home Page 2016 Tax Expenditure Statement - Budget 2016

Current Tax Expenditures

The following sections list tax expenditures drawn from the Income Tax Act 2007, as at 1 April 2016. Current analysis suggests that the Goods and Services Tax Act 1985 does not contain any tax expenditures. Appropriated cash payments (spending) made through the tax system, eg, 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 and administration costs of collecting additional data exceed the value that data might provide.

Table 2: Quantified Tax Expenditures and Spending through the Tax System
Quantified tax expenditures Value of expenditure 2010/11 (actual) Value of expenditure 2011/12 (actual) Value of expenditure 2012/13 Value of expenditure 2013/14 Value of expenditure
2014/15
Value of expenditure 2015/16 (forecast)
As at  April 2016 Estimated Actual As at April 2016 Estimated Actual As at April 2016 Estimated Actual
Charitable or other public benefit gifts by a company: deduction 30 22 20 20 17 17 15 15 15
Charitable or other public benefits: tax credit 210 235 223 226 231 238 230 247 247
Independent earner tax credit 218 220 217 220 214 220 199 220 220
Māori Authorities: donations 0.8 0.5 0.7 0.7 0.9 0.9 2.2 2.2 0.9

Note: measured in $000,000s over March tax years. Italicised values may be incomplete. See the appendix for further information on quantification methods.

Appropriated spending through the tax system Value of expenditure 2010/11 (actual) Value of expenditure 2011/12 (actual) Value of expenditure 2012/13 (actual) Value of expenditure 2013/14 (actual) Value of expenditure
2014/15 (actual)
Value of expenditure
2015/16 (forecast)
Child tax credit 2.8 2 1.7 1.8 1.3 1.1
Family tax credit 2178 2109 2060 2015 2006 1824
In-work tax credit 585 567 545 533 511 522
KiwiSaver tax credit 1041 689 723 804 855 701
Parental tax credit 19 18 17 18 21 31
Minimum Family tax credit 10 11 12 14 16 14

Note: These credits are appropriated and are measured in $000,000s over financial years.

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