✨ Government Policy Announcements
12 DECEMBER 2008 NEW ZEALAND GAZETTE, No. 193 5111
My Government believes that in such challenging times our country can not afford its Parliament to be distracted from the issues that matter.
So my Government will not seek to involve itself in decisions that are best made by New Zealanders within their own homes and their own communities. The new Government’s vision is not to dictate the way in which New Zealanders should live their lives, but instead to ensure they have the opportunities they need to make the best choices for themselves.
My Government will therefore, in representing the will of New Zealanders, remain resolutely focused on the issues that matter, pre-eminent of which will be the need to strengthen the economy to ensure future economic growth.
Honourable members. My Government is concerned that in recent years, New Zealand’s productivity growth has been poor, our after-tax wages have slipped further and further behind those in Australia, and record numbers of people have departed our shores to live permanently overseas. New Zealand’s economy has slipped further behind those of other OECD countries.
It is the view of my Government that if New Zealand’s past ten years were to be described as the decade of missed opportunities, then the next ten years must be the decade of maximized opportunities.
My Government intends to embrace New Zealand’s clear opportunities for improved economic performance and to use them to deliver better wages and living conditions for all New Zealanders.
It commits to, amongst other steps, an ongoing programme of personal tax reductions; a step-up in infrastructure investment; a reduction in government bureaucracy in favour of frontline services; an across-the-board commitment to lifting productivity growth and a renewed effort to lift education standards.
In recognition of the current financial crisis, my Government will move quickly to provide much-needed fiscal stimulus to the flagging economy, in the form of personal tax reductions and a step-up in infrastructure investment.
My Government is today tabling a Bill to reduce personal taxes from 1 April 2009. Its intention is to pass this new tax legislation by Christmas and it believes this tax reduction will equip New Zealanders with some much needed extra cash in tough economic times.
Personal taxes will be further reduced from 1 April 2010 and from 1 April 2011. As a result, by 1 April 2011 around 80% of New Zealand taxpayers will end up paying no more than 20c in tax for every additional dollar that they earn.
This programme of tax reduction is a central part of the economic plan of my Government, because it believes in encouraging New Zealanders to get ahead under their own steam, and it views personal tax reductions as an essential step in ensuring that can happen.
In addition to this tax programme, my Government will urgently set about tackling the infrastructure blockages evident in New Zealand’s economy.
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NZ Gazette 2008, No 193
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Speech from the Throne at the State Opening of Parliament
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🏛️ Governance & Central AdministrationGovernor-General, Parliament, State Opening, Economic Growth, Government Formation