Environment Canterbury
Government Administration Committee
The New Zealand Bankers’ Association welcomes the interim report of the Australian and New Zealand Productivity Commissions on closer economic relations and a single economic market, but notes that addressing the issue of double taxation of company income was an absolute ‘must do’.
“The interim report usefully addresses many of the remaining barriers to a single economic market. However, the most significant remaining issue – that of double taxation of company income – has not been adequately addressed and is a must do for the final report,” says New Zealand Bankers’ Association chief executive Kirk Hope.
“Considerable work has already been done on the issues relating to double taxation for businesses based in either Australia or New Zealand with substantial operations in the other country.”
“These issues have been the subject of discussion and debate for more than 20 years. The combined work of the Australian and New Zealand Productivity Commissions should be a catalyst for timely change as we move toward celebrating the 30th anniversary of CER.”
“Capital should be able to flow between New Zealand and Australia seamlessly without barriers. A free and open trans-Tasman capital market would provide a substantial net benefit to the overall trans-Tasman economy.”
Allowing mutual recognition would allow shareholders resident in one country to use credits for company tax paid in the other country to offset domestic taxes. This would prevent their dividends being taxed twice.
Treasury
As part of Money Week (2 – 8 September), the New Zealand Bankers’ Association is encouraging people to get financial advice on how best to manage their money.
“Getting advice about your finances and how best to meet your needs and aspirations is a good idea for everyone. It’s about making informed decisions to manage your debt, build your savings and make good investments.
“There’s a range of advice available, from free budgeting advice to professional investment advice, which can help you plan goals and get you where you want to go.
“A good start is to talk to your bank about whether your accounts are right for you. Banks are happy to talk about how their products and services best suit your individual circumstances,” says New Zealand Bankers’ Association chief executive Kirk Hope.
“It pays to be clear about the benefits and any associated risks of the financial products and services you’re using.”
The provision of financial advice is regulated by the Financial Advisers Act 2008. Under the law there are three types of advisers. Almost all retail banks are Qualifying Financial Entities (QFEs) and their advisers are qualified to talk to customers about basic products such as accounts and simple investment products. Registered Financial Advisers (RFAs) can also advise on those products. For advice on investments like KiwiSaver, managed funds and more complex products, you need to talk to an Authorised Financial Adviser (AFA).
All QFEs (the organisation, not the advisers who work for them), and all RFAs and AFAs need to be registered. To check if your adviser is registered, go to the Companies Office Financial Service Providers.
The week ahead is Money Week, and the banking industry is getting on board with a range of financial education activities. Mr Hope says banks are backing Money Week because they believe well-informed customers are better placed to make borrowing and investment decisions.
Money Week is a great time to spring clean your personal financial arrangements says the New Zealand Bankers’ Association. Money Week brings together a range of financial education activities from 2 to 8 September.
“Most people think about their personal finances when faced with big life events such as studying, starting work, buying a house or retiring. New Zealand’s first ever Money Week gives us all a chance to think about what we’re doing with our money and how we’re planning for the future.
“Knowing how best to manage your money to meet your needs and aspirations helps you, your family and your community. It’s also essential to our country’s economic growth,” says New Zealand Bankers’ Association chief executive Kirk Hope.
New Zealand banks are right behind improving our financial literacy. Well-informed customers are better placed to make borrowing and investment decisions.
“It’s all about people making informed choices to improve their financial well-being. It’s good for banks, and good for their customers.
“We encourage people to get advice on what’s best for them financially in terms of their personal circumstances,” says Hope.
Banks are involved in a variety of financial literacy initiatives, ranging from community education to online money management information and tools for their customers. They also provide information on specific banking products and services.
Get more information about financial literacy, including a free guide to unravelling financial jargon, and what banks do in this area.
A great independent online resource is the internationally acclaimed Sorted website: www.sorted.org.nz.
For information about specific Money Week activities in your area, go to http://moneyweek.org.nz/.
The New Zealand Bankers’ Association said today that PwC’s Banking Perspectives analysis of the major banks’ results for the first half of their 2012 financial years showed New Zealand banks were continuing to perform well in the face of ongoing global uncertainty.
“Our banking industry is in good shape. It’s well capitalised and regulated. Our strong and stable banks provide a great platform for the economic growth we need,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“The increase in lending to the commercial sector is a sign that businesses are looking to invest more, which is good for the economy.
“There’s been a significant improvement in asset quality. Bad debt expenses are down 27%. This demonstrates that banks are working hard with customers who themselves in financial difficulty. It’s in both the customers’ and banks’ interests to deal with any issues as soon as possible.
“While the average net interest margin increased slightly to 2.4% in the first half of 2012, our banks continue to be very competitive. This is good news for customers. Interest rates are at historic lows and will likely stay down longer than expected. Banks are working hard to manage their funding costs.”
Hope added it was important to acknowledge the industry’s significant investment in New Zealand. “Not only do banks support our economy though lending and investment services, and providing a world-class payments system, they also make a big direct contribution. In 2011 the banking industry spent $4.46 billion in New Zealand and paid $1.3 billion in tax. Banks also provide employment for over 25,000 people in New Zealand.”
The New Zealand Bankers’ Association is urging the public to be on guard against an email scam. Scammers are sending emails out which appear to come from a New Zealand Bankers’ Association email address: nzba@nzba.org.nz.
The scam emails include a subject line of “We are necessitating a verification process on all account(s)”.
Anyone receiving this email, or anything similar, should delete it immediately. Do not click on any links within the email, and do not disclose any personal information.
“This scam was relatively easy to spot because the Bankers’ Association is not a bank, and would never ask people about their bank accounts.
“People are reminded to safeguard information relating to their bank accounts, and never to disclose their PIN numbers or account passwords to anyone. I would like to emphasise that the New Zealand Bankers’ Association, and its member banks, will never ask a customer to disclose their PIN number or account password,” said New Zealand Bankers’ chief executive Kirk Hope.
This kind of scam is known as “phishing”. Phishing scams try to get your bank account numbers, passwords and credit card numbers.
Get more information about phishing scams
A reduction in compliance costs could be on the way for small and medium sized companies if the new financial reporting bill passes later this year. New Zealand Bankers’ Association CEO Kirk Hope says the savings could be significant.