Foss Craig: Taxation (Consequential Rate Alignment and Remedial Matters) Bill — First Reading 
Text is incorporated into the Bound Volume 
Foss Craig: Taxation (Consequential Rate Alignment and Remedial Matters) Bill — First Reading 
[Sitting date: 28 July 2009. Volume:656;Page:5163. Text is incorporated into the Bound Volume.] 
CRAIG FOSS (National—Tukituki) 
: 
 Tena koutou tena koutou tena koutou katoa. Surprisingly I find myself in agreement with a couple of the last comments made by the previous speaker David Cunliffe about the need for clarity and a robust framework around taxation issues. I appreciate those sentiments. I think he is right in that across the House generally in the precincts of this place and across the community there is a general acceptance of the need in our taxation system for clarity modernisation and alignment in order to make it as simple as possible and to make compliance as easy as possible. 
I say one big “Kia ora” to the Minister of Revenue who in his speech noted that this bill is nothing like the bill introduced in July last year by the previous Minister of Finance. That bill was about 850 pages long and I think we have about 50 pages here and again do I look forward to that structure. Because of that process we have discovered that there will be maybe two bills per year—there is bound to be an exception to that along the way I am sure—on policy and remedial matters. At least the professionals downtown will appreciate that we are trying to provide some structure around our legislative programme and provide some certainty. I acknowledge the previous Minister for the intent there. 
The Taxation (Consequential Rate Alignment and Remedial Matters) Bill is very similar to this ambitious National Government in that it is taxpayer-friendly and I will come back to some of those matters in a moment. But to feed off the previous speaker I say it is very important to note for those listening the hundreds of millions of dollars of taxpayer assistance tax relief and fiscal benefits that this new National Government has brought in after only 9 months in office as opposed to 9 years for the previous administration. It is very important to note—because it sometimes seems to be forgotten in the speeches made by members on the other side of the House—that this policy was laid out before the election. So the New Zealand public very heavily endorsed the policies and processes of this new National Government. 
This bill clarifies modernises and tidies up many many matters. It aligns certain investment tax rates with income tax rates bringing clarity certainty and simplification to all facets of our tax system. This bill is not contentious—at least not at this stage. I do not think anyone has raised any contentious issues during the first reading but some issues may arise during the select committee process. 
Stuart Nash 
: It’s another Labour bill! 
CRAIG FOSS 
: That member has found something contentious in it and we look forward to discussing the contentious issues he is thinking of. We can discuss those issues at the Finance and Expenditure Committee if we vote to send the bill there this afternoon. I am sure the hard-working members of the Finance and Expenditure Committee will discuss those matters and hopefully come to an arrangement whereby hopefully this bill can be reported back as scheduled as the Minister alluded to in his speech. 
I appreciate the Labour member Mr Cunliffe noting that Labour is supporting this bill—other members on that side may want to note that as they write their speeches—and I freely acknowledge the professionalism with which the member is approaching issues in and around tax. There is politics but the intent to have a better tax system is generally accepted across the House and I am grateful for that. I look forward to the continuing professionalism and cooperation of all members of the select committee as we facilitate the bill through and if we look at the dates we see that there is a pretty tight report-back time. As chairperson of that select committee I am sure we will have some discussions in and around that. Hopefully we can facilitate that and again it is noted that the previous member said that Labour would be supporting this bill and will also be in discussion with other parties. 
The main features of this bill as the Minister of Revenue outlined are the alignment of resident withholding tax rates—they are the tax rates paid on interest income—with the new primary rates that this Government brought in in previous legislation prior to Christmas. It goes without saying that those rates should be the same. We are trying to make the tax system as neutral as possible and to disincentivise any one particular form of investment over another to allow our economy to grow. 
Most important the bill brings in one new rate. The current marginal income tax rates and the present resident withholding rates of 19.5 percent 33 percent and 38 or 39 percent will become 12.5 percent 21 percent 30 percent 33 percent and 38 percent and the application dates on those are all 1 April 2010. However there is a caveat to the 30 percent rate and taxpayers can opt in earlier. That is being taxpayer-friendly and that is recognising their circumstances. Taxpayers can take advantage of new and lower tax rates which were voted for the last election and are now being brought in by this very ambitious National Government. 
On that note I will end and I look forward to the next speakers as they continue the endorsement of this very good bill. Thank you.