Dyson Ruth: Taxation (Venture Capital and Miscellaneous Provisions) Bill Taxation (Annual Rates of Income Tax 2004-05) Bill — Third Readings 
Text is incorporated into the Bound Volume 
Dyson Ruth: Taxation (Venture Capital and Miscellaneous Provisions) Bill Taxation (Annual Rates of Income Tax 2004-05) Bill — Third Readings 
[Sitting date: 14 December 2004. Volume:622;Page:17835. Text is incorporated into the Bound Volume.] 
Hon RUTH DYSON (Minister for ACC) 
: 
 It gives me a huge amount of pleasure to contribute to this debate on this taxation legislation which was introduced to the House I think at the end of March of this year. The contributions from the members of the Finance and Expenditure Committee of which I used to be a member have been very interesting. They obviously put a lot of time energy and effort into consideration of this legislation. Considering tax bills is always a hard job because they are very detailed. The devil as we know is always in the detail. So I commend the members of the select committee who have contributed to the debate this afternoon for the work that they have obviously put into this legislation. 
The legislation is a major reflection of several important significant themes of our Government’s tax policy work programme: firstly measures to promote growth and innovation which is a fundamental platform of the Labour-Progressive Government; simplification of the tax system particularly for small businesses to ensure that their compliance costs continue to be reduced; and obviously something that is a core responsibility of any Government and that is protection of the revenue base. It also as an added side benefit will help New Zealand to compete more effectively with Australia for venture capital. It aligns our venture capital tax rules more closely with those of Australia and it assists in promoting venture capital investment in our country by non-residents. Those are significant contributors to supporting continued economic growth better employment figures and lower unemployment figures. 
While I am on that subject it is an absolute delight to every member of this Government and hopefully even to members of the Opposition to record that we now have the lowest unemployment rate in New Zealand for nearly two decades. One of the biggest pressures facing employers in the country is an inability to attract staff because of the low number of unemployed that we have. Obviously our focus in the future will be on offering even more improved support to people who are currently in part-time work or are unemployed and who would be able to make a more significant contribution to our economy if they were in the paid workforce. 
The legislation also introduces a rebate of income tax for small-business taxpayers who pay tax on their self-employed or partnership income during their first year. Self-employed people have been calling for this measure for a long time and it is really great to see it introduced at this time. 
The legislation amends the framework governing the resolution of disputes between taxpayers and the Inland Revenue Department to improve the process for both parties. Again that will be a significant contributor to reducing compliance costs for taxpayers. Having that legislative process available will be of great assistance for them. 
Finally it sets the income tax rates that will apply for 2004-05. It is fantastic legislation and it is my pleasure to support its further progress.