More than 4700 businesses in Southland stand to benefit from the 1 April cut in company tax to 28 per cent.

This is more assistance for productive businesses in Southland.  Cutting company tax from 30 per cent to 28 per cent increases incentives for our firms to reinvest earnings back into jobs and growth.  This company tax cut puts us ahead of Australia, and helps make New Zealand companies more competitive.

The company tax cut is part of the second round of Budget 2010 tax changes.  Across-the-board personal tax cuts kicked in last October.  These tax cuts are paid for by last year’s increase in GST and a number of other tax measures that take effect on 1 April and make the tax system fairer.

The National-led Government’s tax reforms are helping tilt the economy towards savings, investment and exports, and away from unsustainable consumption, borrowing and government spending.