Kiwibank could be up for sale, as English hints at state asset sales

Finance Minister, Bill English has today speculated on the possible sale of state assets, including Kiwibank. Mr English said at a post-Budget event in Christchurch that National would "come to grips" with its position on state asset sales within the next few months.

He later revealed that the government was doing a stocktake of its current assets - this has led to speculation that there may be various state assets up for sale shortly.

''It seems to me, and I have checked this, that there is a strong demand among the mums and dads for a Kiwi investment model and if we put product into the market people would buy it. Would I be right about that?''

A few hands went up in the room.

''In fact I think there would be a bigger proportion of the population than that would have a crack at it. So we will have a think about it,'' English said.

''My guess would be there's a lot of demand for good share value and it would certainly help us to be able to free up that capital.

"But we have made undertakings to the public and we certainly won't move anywhere without getting a mandate to do so,'' English said in answer to a question about asset sales.

The National Party's plans for state assets have been questioned before - particularly during the election. This was particularly evident when a tape was leaked that showed Mr English commenting that National would "sell Kiwibank eventually, but not now".

Here is a news report from the time of the incident:

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Peter Dunne slams Labour's proposed GST reform

Peter Dunne has slammed Labour's proposed plan to make essential items such as bread and milk exempt from GST.

In his speech to the House in response to the 2010 Budget, Mr Dunne commented on how the logistics and possible issues that would arise should Labour's plan be executed.

Mr Dunne cited the problems that would arise for retailers having to adjust their cash registers, that would have to be able to distinguish between 'essential items'.

In addition to this, he used the example of a ham sandwich to illustrate his point, saying that if you were to buy a ham sandwich under the GST proposed by Labour, you would have to pay GST for the ham within the bread, but not the bread itself.

Furthermore, Mr Dunne praised the 2010 Budget and commented on its benefits for the economy and the greater benefits for the average New Zealand family.

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Budget lives up to expectations - with a few surprises

Finance Minister, Bill English today delivered the 2010 Budget that will see, among other things, income tax decreased and (as expected) GST raised.

In short, it could be said that the budget is more targeted at spenders, rather than savers.

Here is a rundown of the tax cuts in full:

From October 1, the top tax rate, payable on income above $70,000, will fall from 38 cents to 33. The 33 cent rate which applies on income between $48,000 and $70,000 will fall to 30 cents and the 21 cent rate, on income between $14,000 and $48,000, will fall to 17.5 cents.

The bottom rate, on earnings below $14,000, will be cut from 12.5 cents to 10.5.

Government estimates predict that the tax cuts will deliver just over $29.00 more a week to taxpayers earning around $50,000 per annum.

Superannuation, benefits and Working for Families will also be raised, in part to compensate for the rise in GST.

Mr English said that that tax reform was the 'centerpiece' of the Budget. The company rate will also be shaved off somewhat. The company rate will be cut from 30 cents to 28 cents next year.

The Budget also aims to prevent people from exploiting loopholes in the country's tax law:

From next year, property investors will no longer be able to claim depreciation on their buildings against their income and the values of assets held in trusts will be counted as part of a household's income when deciding eligibility for Working for Families.

The Government has estimated that unemployment will fall from 7.1% this March to 6.2% the next year and will continue to fall to 4.6% by 2014.

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Budget will benefit the majority, says Bill English

The Government is attempting to sweep away claims that the 2010 Budget, to be released tomorrow, will mostly benefit the wealthy.

Finance minister, Bill English, is attempting to quell such fears, and claims that the wealthy will probably end up paying more tax than they did before. Primarily, the Budget is aimed at putting roadblocks in place that will prevent the rich from avoiding high taxes through legal loopholes.

Phil Goff, however, has not been so welcoming of such claims. "From the signals, this will be a budget for the most wealthy, not for middle or low income earners", Mr Goff said.

National also says that the Budget will be full of tax hikes for the rich, including a rise in GST, which has been expected for some time.

There have also been claims that the Budget will focus on cuts for Government spending, although there are no signs of this thus far.

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