Originally Posted by
Bjauck
The Australians also have an interesting way of dealing with Health costs with high income earners getting a rebate for private insurance premiums and an extra levy if they don't take out private insurance, if I understand their scheme correctly.
And in the UK and Australia real estate and some other property transactions often have stamp duties. However, true, there are various caveats put on the financial investment schemes. However the incentives to invest in financial investments, half-hearted though they may be, are more attractive than what NZ has in place for either retirement or non-retirement savings. Hence the continuing overwhelming appeal in NZ to use the tax-preferred owner-occupied housing as a means of investment as well as the provision of home and shelter.
At least the NZ imputation scheme was introduced to resolve the double taxation issues from NZ dividend payments. A next step will be to eliminate the taxation on the inflation component of a fixed interest investment's return.
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