Bennett David: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — First Reading 
Bennett David: Taxation (Annual Rates Returns Filing and Remedial Matters) Bill — First Reading 
[Volume:676;Page:21441] 
DAVID BENNETT (National—Hamilton East) 
: 
 The Taxation (Annual Rates Returns Filing and Remedial Matters) Bill is important because it sets the tax rates for New Zealand as we go forward. Each year we set the tax rates. This is very important because it is part of the growth plan for New Zealand. We have heard Labour members indicate that they are not very happy with that growth plan. They would much rather have a plan very similar to what the Americans have with very high taxation leading to no growth. New Zealand has a much better plan whereby we incentivise people to get out there and make successes of their opportunities and abilities. [ 
Interruption 
] We hear a few Labour members reacting to those comments because they know that it is the truth. They know that the US economy is not doing so well and that their plans would put New Zealand even further into the quandary of the world economic malaise and would not lead to our getting out of those problems in a quick and successful manner. 
The Greens have made comments about debt. It is interesting that when we go to an election candidates meeting the Green Party candidates stand there and listen and say: “Yes we will do everything that anybody wants.” So money is no limit to the Green Party. When Green candidates go along to these meetings they have no limit on what they will spend; then they come into this House and say that debt is too high. If we look at Green policies and add them up we come to some very big debts and that is the nature of the Green Party. 
This bill is important because the National Government is firmly focused on lifting New Zealand’s economic performance. We want to set up for New Zealand citizens these strategies and approaches so that economic performance can lift and taxation is one of those key elements. There are also a number of other measures in the bill that are important and that people would want to acknowledge and they are in respect of the handling of tax returns with the ability to handle those obligations electronically. That is very important in a modern world where many businesses and individuals use electronic means of communication and accounting records and if we can simplify the tax filing requirements it makes sense to do so because that is good for New Zealanders. 
There are also some announcements on software development expenditure. That will now be deductible under this bill. That is very important because a lot of New Zealand’s high-tech companies engage in software development. It is one of those things where not necessarily every project that is engaged in will be successful. The ability to write off those unsuccessful ventures into software development is important. It means that companies can continue with software development and will not feel that once they have used their one go at software development they have compromised their ability to do so and they stop further software developments. It is important for New Zealand’s high-tech industry to maintain and enhance its ability to deliver to the world stage products that have the highest degree of technoho—technological input especially through software development. 
Aaron Gilmore 
: Ha ha! 
DAVID BENNETT 
: I know our members may be laughing because of my slip-up in pronunciation. 
There are also some measures on KiwiSaver in this bill. Labour members made some comments about KiwiSaver. I think Shane Jones used the words “principled approaches”—I think he said the Labour Party took a principled approach to KiwiSaver. Well that cannot be further from the truth. The reality is that Labour members used KiwiSaver to buy votes as they have done in previous elections and as they have continued to do with other policies. It was merely a vote-buying approach by Labour and it is not principled in any sense of the imagination. It is very sad to see someone like Shane Jones coming into this House and using those words when he is referring to a policy like that which was simply there to try to retain power for Labour. 
When we look at those changes to KiwiSaver it is important to look at setting the right signals around retirement and also at giving New Zealand taxpayers the opportunity to save for their retirement in a way that is a fair but also balanced approach so that New Zealanders have the opportunity but also are realistic about what those contributions can be and what they need to be to ensure that that scheme is viable and that this country as a whole is able to maintain that retirement savings approach through KiwiSaver. So those changes are very important when we look at what is necessary to encourage New Zealanders and to achieve the purposes we need for New Zealanders going into retirement. 
Some changes have also been made in relation to phoenix fraud schemes and GST on those schemes. We have had in this House a number of bills dealing with phoenix transactions and schemes and this bill is part of that approach. Those bills have really been there to try to put a dampener on the tax evasion that has been occurring through the use of such schemes. This legislation ensures that the recent changes in GST on phoenix fraud schemes and the apportionment of input tax deductions operate as they were intended to. That is an important part of this legislation as well. 
When we look at the legislation we see there is also some clarification of treatment of GST on late payment fees. There are some changes in relation to fees being charged for binding rulings and depreciation determinations and some clarification of entitlements to Working for Families tax credits. Basically the bill has a number of elements that are important for the economy going forward. The first element is those tax rates which are crucial for setting the economic growth agenda we need for New Zealand and for sending the right signals and incentives to our citizens as they look forward to what their opportunities are in the economic platform we have created. Only by lifting that economic performance can we create the jobs and opportunities to boost incomes and improve the living standards of our people going forward. 
The core part of the bill was setting those tax rates but as we said earlier the bill attends to some other very important issues in relation to software development the KiwiSaver minimum contribution rates for employees and employers and the minimum equity holding for foreign-owned banks. The bill also covers some clarification of some minor GST and depreciation determinations. We look forward to this bill passing through the House.