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Budget 2017 Home Page 2016 Tax Expenditure Statement - Budget 2017

Current Tax Expenditures

The following sections list tax expenditures drawn from the Income Tax Act 2007, as at 1 April 2017. 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.

A new column has been added to Table 3, describing the policy rationale for individual expenditures. Further, the classification of each expenditure in Table 3 has been added below the section reference. These have been added to provide greater transparency, as recommended by the Open Budget Initiative and Transparency International[3].

Table 2: Quantified Tax Expenditures and Spending through the Tax System
Quantified tax expenditures Value of expenditure 2011/12 (actual) Value of expenditure 2012/13 (actual) Value of expenditure 2013/14 Value of expenditure 2014/15 Value of expenditure
2015/16
Value of expenditure
2016/17 (forecast)
      As at April 2017 Estimated Actual As at April 2017 Estimated Actual As at April 2017 Estimated Actual
Charitable or other public benefit gifts by a company: deduction 22 20 17 17 31 31 18 21 21
Charitable or other public benefits: tax credit 235 225 234 234 241 244 235 247 247
Independent earner tax credit 223 223 221 223 219 223 208 223 223
Māori Authorities: donations 0.5 0.7 0.9 0.9 2.5 2.5 3.7 3.7 3.7

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
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 (actual)
Value of expenditure
2016/17 (forecast)
Child tax credit 2.0 1.7 1.8 1.3 1.1 0.9
Family tax credit 2109 2060 2015 2006 1793 1763
In-work tax credit 567 545 533 511 513 566
KiwiSaver tax credit 689 723 804 855 698 781
Parental tax credit 18 17 18 21 31 30
Minimum Family tax credit 11 12 14 16 14 13

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

Notes

  • [3] http://www.internationalbudget.org/budget-work-by-country/findgroup/group-data/?country=nz; http://www.transparency.org.nz/2013/http:/transparency/2013/Integrity-Plus-2013-New-Zealand-National-Integrity-System-Assessment
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