May 21, 2010
A budget for the times
The important thing about this budget is that it begins to set a new policy direction for the long term. The new policy settings will provide better rewards for working, earning and saving. It will, through the GST increase to 15%, encourage kiwis to save any spare money - rather than spend it. By tightening up the rules around LAQCs and depreciation the government has also nudged NZers away from putting our savings into speculative property and towards other more productive investments. Changes to Kiwisaver contributions are also helpful - although could have gone further in boosting NZ's domestic savings rates. With the economy poised to grow over the next 12 months it is a steady budget appropriate for the times.