There has been much coverage in the press recently of the supposed rorting of an Australian tax rebate by New Zealand winemakers. The Wine Equalisation Tax rebate was designed to assist small Australian winemakers. However, under the terms of the Australian-New Zealand Closer Economic Relations Trade Agreement, Australian and New Zealand products must be treated equally, so the rebate is extended to NZ-produced wines too. It is currently estimated that NZ wine producers are claiming roughly $25 million in rebates every year. This is not a rort, but simply the proper operation of a single market in which Australian producers could expect to receive preferential treatment in NZ too. A single market cannot exist if one party can twist its tax laws to favour its own producers over those of the other party to the agreement. If you are looking for the real rort in the trans-Tasman single market, you need look no further than Australias policies towards New Zealanders living there. The Australian Government currently collects roughly $2.5 billion in income tax (and much more in other forms of tax!) from non-protected New Zealanders every year, but gives them only limited access to government services and no pathway to citizenship. More than $2.5 billion makes $25 million look like a piddling amount. It is only too clear which country is really rorting the trans-Tasman single market and its not New Zealand!
Posted on: Tue, 19 Aug 2014 07:03:54 +0000
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