Personal Finance

Federal Government Looking to Simplify Tax System, High Income Earners could be Hurt

Treasurer Wayne Sawn, in a development which could hurt those which heavy paychecks, has flagged the possible changes to the current tax system under the 10-year reform agenda. The main changes highlighted have been - increased taxes for the rich and substantial cutbacks to the lucrative superannuation benefits that they presently enjoy.

Benchmark Interest Rate Raised by Australia to 3.5%

After increasing its benchmark interest rate for the second time in nearly a month, Australia has become the first country to have revised the borrowing costs two times in the current year as global economy has started to show signs of recovery. The rate of interest has been increased almost overnight from an earlier figure of 3.25% to 3.5%.

Glenn Stevens, Reserve Bank Governor, raised the interest rate in Sydney today, a decision which is in tune with the predication made by 18 out of the 22 economists interviewed by Bloomberg News.

New Zealanders Struggling Under Rising Debts - Baycorp

New Zealanders

In figures which were shared yesterday, New Zealand's Baycrop collection agency has revealed that more and more Kiwis are struggling to repay debts, as debt levels have seen a sharp 50% rise in the last three years. The average debt due for collection, according to agency revelations, now stood at $814, a steep rise more from 2006's figure of $544.

The figures also shared that people were now taking nearly 50% longer to repay their debts which included mortgages, fees and fines, only 40%, on the other hand, were keeping up with the payments.

Some Credit Card Terms Might be Done Away With - Government

Credit Card

As per a recent proposal, the Government is likely to re-look some credit card terms which are being viewed as 'unfair', and completely do away with the same with a view to stop credit card companies from continually raising interest rates on debts which have not yet been paid.

Another thing which credit card firms will not be able to do, once the Government takes a final call on the proposal, is to increase someone's spending limit without authority approvals.

Capital Gain Tax debate intensifies in NZ

Leonard Burman

A paper, presented by tax academicians Leonard Burman and David White, called for extending the capital gain tax to investment property and houses, as people unnecessarily buy neighboring land to avail tax exemptions.

Mr Burman said: "I think New Zealand should have a capital gains tax. Right now you have a significant amount of income that's free from tax - most of it is earned by very wealthy individuals it's a great deal for them."

Credit card use is shrinking in New Zealand

Credit card use is shrinking in New Zealand

The latest figures show that use of credit cards has been declining in New Zealand with debit cards becoming popular among people in the country.

Electronic card spending remained almost flat since July and total transaction rose just 0.3 per cent in August, primarily due to rise in non-retail transactions as per information provided by Statistics New Zealand (Stats NZ).