KEY POINTS:
Here is an earlier selection of Your Views:
Rob George
The KiwiSaver initiatives are brilliant. The tax relief for kiwi workers to encourage them to save is also a very good move. This is clever & targetted tax relief. The extra money for more teachers and police is welcome news. I also like the new funding for rail electrification & improving energy efficiency in homes. Both are very important, practical steps, to help NZ address global warming. Tax relief to business to encourage research and development will go a long way to improving our economic performance.
Simon (Oamaru)
Government is driving inflation from within. Costs are sky rocketing as a result of Government charges and policies; 4 weeks holiday pay, increase in minimum wage, the fish hook ridden holidays act and now kiwi saver and it's further head aches for the employers. Also the increase in road user charges (which thay gave 48 hours notice on so companies couldn't buy ahead), spiralling fuel costs which as lead to huge GST takes. All these costs are simply passed on by businesses and are therefore fueling inflation. The government is blaming inflationary pressure on surplus cashflow from the buoyant housing market. The housing market is and always will be self correcting. Inflationary pressures are coming from a heavy handed bureaucratic government. When is this Government going to do something to make this an attractive business environment ? Rather than continually make it harder e.g. give a 3 per cent tax cut in corporate tax rate but then employers have to make a compulsory contribution to Kiwisaver, but wait - they in turn will get a tax credit. Why not just not take it from the employee's wages in the first place and save all that administration? Sums it up really.
Carlos
We've been paying road user taxes for years & what have the government been doing with it?? They're so short sighted, instead of planning ahead they've let things get so bad & now they're panicking. Why should we have to pay for their incompetence? And electric trains ?? Isn't the country running at near max capacity? So they'll have to build another power station to run them. Who's going to pay for that? All this government has done of late is create more bureauratic rubbish. If they cut back on their spending on stupid things & concentrated on running we would be in this state.
AK
I hope its the last term of Labour Govt. Irony is that I have had always voted Labour in the past, but wont be doing it again. No visible tax-goodies for hard working individuals. I must say its better to sit at home on dole rather than working hard, paying off more taxes and not to forget the ever-increasing fuel cost, food cost, transportation cost. I am sure people getting dole or similar benefits like accommodation benefit, child benefits would be better off as compared to young couples like us toiling hard to fill the govts treasury!!
Paul
Having Cullen in charge of the economy is like having a driver with his foot on the accelerator and the brake and having the handbrake firmly applied at the same time. If he was young and the cops saw him spinning in circles like this they would arrest him for careless use and impound his car! We need a snap election!
Michelle
I wouldn't mind so much the petrol rise if we had better roads and better public transport. I cant see where the extra money is going. I can't see the reasoning in putting the petrol up, that means the food price and everything will rise as well.
Accountant
I thank Dr Cullen. I am going to be rolling in it with lots of work. As many individuals now create and start up a company to avoid paying higher tax. Tax evasion will be rife which is legit under the present tax laws. Why pay 39 per cent in tax when you can create a fake / holding company to funnel your money into the company and pay yourself a small wage and benefit by paying less tax at 30 per cent. R and D Research and Development will be another tool to funnel tax losses into fictional research and paying lower tax. Mr Cullen has done it again. Don't worry you PAYE salary and wage earners hoping for a tax cut, you will not see any surplus budgets in the future. The tax take will be much lower and Cullen can now say there is no major surplus in the years to come. Ahh the life of an accountant is beautiful.
Confused again
I maybe a complete idiot and naive in the ways of government budgets but why is it that every year it seems that there is a new tax or levy to pay for something like roads or public transport. The New Zealand taxpayer has to live with these increased costs and then the government sits on their $6 billion surplus. Even worse is that they plan to do it for the next four years! Please give us a break.
Mark
This is a rollercoaster budget.....off we go upward with a business tax cut, but oh, no here's a decline because this will be eroded in the kiwi saver costs. But lets pull up again with a savings incentive, but oh no we're heading off the rails with a new petrol tax ... oh well, here we are, the budget ride is over and where back where we started. Never mind, that ride over there looks more interesting, what's it called.... The Aussie Flyer.
NS277
This is an another balanced, well-considered budget from Cullen. His targeted tax cuts and targeted spending are so much more effective than National's proposal for across-the-board tax cuts - all that National's policy would do is increase inflation and decrease spending on education, health and infastructure. Labour has the balance between spending and cutting taxes just right.
Rachel (Albany)
While this tax will not affect me directly, I am disappointed at the effect this will have on low and average income earners. This will not only affect petrol prices - every person that commutes will be affected, especially those that can least afford it. How long until the bus and train companies raise their prices citing this rise? I am disgusted with this budget. Shame on you Mr Cullen.
Julz (Rotorua)
All I have to say on this 10 cent petrol tax is thank goodness I live in Rotorua and have no intention of going to live in Auckland or Wellington. Auckland can't run the rail system they have now - no trains for Eden Park matches, Opera in the Park etc - so to give them some new toys is just a total waste of Auckland and Wellington tax peoples money.
Christopher
The Budget is excellent. I applaud the Government's attention to increasing our savings rate by providing a $1040 tax free benefit. I also applaud the Government's desire to see that companies provide for their workers by making it compulsory for companies to contribute towards employees saving schemes. I am very pleased at the money to be spent on electrification of the Auckland rail network. This will mean better and faster train services. The electrification will need to be undertaken with the purchase of better rolling stock, and double tracking of the southern line. No doubt businesses will whine and moan, instead of getting on by doing the things that they *should* be doing best - providing an ecologically friendly product or service. No doubt special interest groups such as employers and manufacturers gangs will whine and moan instead of focusing on the health and welfare of their workforce. Given the whining that will drone on and on, and the level of it, an excellent budget.
More taxes
So is GST going to be added on in addition to this tax?? Another tax on a tax?? I live on the North Shore and this is of no benefit to me, what trains? Bring on National ASAP...
Bruce (Te Kuiti)
Budget. Actually a tax increase when the petrol tax comes in. All the surplus money they talk about. Surely medical, schooling, extras would not cause inflation. Generally - pathetic!
Ray
It says all you need to know about this government when you read "... government will be putting in its money as well ..." It is not the governments money, it is ours.
Graeme Edwards
This is a horrible budget. More interference by the state - we will all be forced into KiwiSaver, not because its a good plan but because to do otherwise would mean that we are subsidizing the people who are in KiwiSaver. Its not wonderful that the government deigns to give us $20 per week - thats our money! In effect we are borrowing (through our mortgages and other debt which we won't be able to pay off as easily) the money we will be putting into kiwisaver and borrowing to pay the taxes that are getting redistributed into everyone elses kiwisaver account.Stop this Theft!
Greg (Auckland)
I dont drive so the petrol tax is only going to affect me by driving up prices. Wheres the light at the end of the tunnel, is it any wonder why productivity is down in NZ when the taxpayer is fighting a uphill battle against rising government costs, inflation & taxation creep, whats the point of earning more money over the next tax threshold it will be eaten up by inflation. Theres no return for the single taxpayer. There's not much for me in this country.
Auckland
Great News! Just the push I needed to leave the hubby and go onto the DBP.
Aya (Wellington)
Once again the vast army of self employed miss out on most of the Kiwisaver benefits. Maybe they are not considered likely Labour voters.
Richard Stanton
With all the wise words of lowering our energy usage I am very disappointed with the lack of direction in domestic energy consumption. Where is the so-called "Green Party" when it comes to promoting solar heating? A drive across the new housing developments in east Auckland (Botany, Dannemora)shows hundreds of new homes and not a solar panel in sight. Solar water heating alone on that scale would reduce the need to build new generation capacity. All it takes is the will to actually write it into the building consent process. Still, the Green Party are happy to build new power stations to drive Aucklands trains - or will they only work on windy days?
BadBoyBev (Auckland)
It is obvious that Michael Cullen (& Helen Clark for that matter) are out of touch with ordinary middle income New Zealanders. Has Dr Cullen forgetten the 5 cent fuel tax he lumped on us a few years back? what's happened with the revenue collected from that tax? I will tell you - he has lined the pockets of the 'beneficiariess that's the only way Labour are going to be re-elected & not directed the funds to where they should have gone - Auckland's Roads. I am a 33-year-old male living in Auckland, in a de-facto relationship with no children, own a house with a mortgage & have private health insurance. So what exactly do I get for my taxes - nothing but more taxes. No No No Dr Cullen - we are the drivers of the economy & you work for us. The giant surpluses over the last two years should be returned to the taxpayer. Dr Cullen treats these surpluses as his own money - it is not & we need a tax break. Working for Families is an outrageous use of taxpayer funds - you want a family - you pay for them - not up to me to pay for your offspring.
Steve (Auckland)
How much longer, as a country, are we going to have to put up with this extremely left wing, non democratic, government. We as New Zealanders are letting ourselves down by being pushed by Cullen and Clark, and now a budget with no substance from a man with less substance. A 3 per cent cut in company tax is not even worth opening the doors for and so we will still see major, iconic, Kiwi businesses leaving our fair shores for a more profitable business experience. I urge all New Zealanders to start to hit government more and not put up with this, essentially communist government. We need to boycott and push for referenda and make our voices heard, and get back to being a fair democratic society. And like anyone in Auckland, or Wellington, I fail to see what adding another 10 cents per litre to fuel (which already contains in excess o 60 per cent tax) will do to help the situation. Mr Cullen, I can only assume you are acting on bad advice as you certainly do not have a grasp of the transport problems we are facing now and in the very near future. This budget is a complete and utter failure!
Peeved (Wellington)
I see that labour have been having lessons from Nulabour in UK. No point in putting anything into the Kiwi saver, if on the other hand the government is putting yet another tax on the petrol of 10cents. We need to work, and if the government who is sitting on obscene surpluses keeps it all, and does not put it to use funding better rail and road, then what is the point. The majority of Kiwis are going to be worse off in the long run, regardless on how this government puts spin on the budget. People need to know how much of the original 5 cent petrol tax per litre is going to roading projects etc. Overall an uninspired budget,from a very uninspired party.... Time for a change.
Former labour voter (Auckland)
Thanks Helen & Dr Cullen, just when we thought we were paying too much tax on fuel as it is, you want to steal another 10 cents per litre ?? Perhaps if all the current tax on fuel went into the roads we would not need these new taxes. Also what percentage of the total tax take already comes out of Auckland? , more than what comes back I bet. This government is a disgrace, I wish our country knew how to protest, A few lessons off the French are in order maybe...My only hope is that you both get what you deserve next year, Lets hope National finally remember how to win.
Robyn (Dunedin)
That was Michael Cullen's last budget. If the budget was subject to the law around "misleading advertising" Michael Cullen would be prosecuted. Roll on 2008 and a National victory.
Tom (North Shore)
Labour Labour Labour, when will you learn. Would the last person leaving NZ for Aussie please turn out the lights.
Graeme (Wellington)
Smart political move to stop us all talking about the personal tax cuts that weren't.
Chris (Auckland)
It's official - Cullen has lost it. It seems it's not enough that Auckland and Wellington are net contributors of tax to the country (that is, they already provide more in tax revenue to the country than they cost in infrastructure expenses), he's decided there's more blood to be sucked. If anyone in the rest of the country is rejoicing over this... Stop, pause for a moment and think about this: If it costs more to work in, or to transport goods to and from, Auckland and Wellington, that cost will eventually trickle down to you all. Happy days.
pCb - Newly Poor (Auckland)
This budget achieves nothing except putting more strain on those who can least afford it and with the tax of gas driving more than property prices up in Auckland.
Karl Rohde
Simply not enough for businesses. Very disappointed. Providing exemptions to foreign owned companies should be expanded to cover all businesses. Salary and dividends are all taxed, as they are "end of the chain", but profits kept in business are generally used to expand that business or provide buffers for lean times. Profits kept in business should simply not be taxed if it can be shown they are used for the betterment of the business.The R & D incentives are minimal, and nothing compared with other high growth countries of similar size, e.g. Ireland and Denmark. Basically, another budget from academics who have no clue about the struggles of NZ business.
Alex
Michael Cullen's ignorance of what motivates people working in the real world is astounding. His arrogance in thinking he knows best how to spend our money is astounding. His inability to produce policy other than more taxes is astounding and if he thinks that Kiwis are going to be stupid enough to fall for cosmetic election bribes next time around then he should resign right now. He is altogether a walking disaster with no connection with the realities of daily life in this country.
Simon
No big surprises in the budget. It remains to be seen what the NZ public is going to do next year. Vote Labour in or out. It will be very difficult for National to dismantle some of the framework if they get re-elected. Because in the real world OECD, World Bank, IMF and oversea investors will still think NZ is doing the right things and is a good place to invest. Our laws, low corruption etc are favourable to foreign businesses. I am not concerned if NZ companies wish to outsource offshore. They will dscover corruption, have to pay kickbacks, infracstruture is poor, congestion, roading, railways etc. There might be cheap labour but they will pay at the other end with transport etc. Most foreign companies set up headquarters business in Singapore because of no corruption. Asia is a den of thieves. Places are prone to corruption, coups, foreign exchange restrictions, shoddy laws and a lot of bureaucratic red tape good luck to them. It helps to be in an English speaking country too.
Peter Slawson
This budget is just tinkering and does nothing to help small businesses - quite the reverse. We are over 65 and run a small business so we get nothing from this budget. We have been put off employing further staff by the present environment and this KiwiSaver compulsion means will definitely not be employing staff.