By Nick Willows
Employment tax incentives
Introduction of youth employment tax incentive to encourage employers to hire young employees. This will be a graduated tax incentive at entry level wage. The incentive will be reduced to zero when earnings of the employee reach the personal income tax threshold.
Donations to environmental, welfare and humanitarian PBOs will be deductible up to 10% of Taxable Income to help those organisations. It is proposed to allow the excess of 10% to be carried forward and allowed as a deduction in future years (i.e. to be rolled forward).
Employment share schemes
A review will be performed regarding the claiming of deductions by employers in respect of employee share schemes. A special dispensation will be implemented in staff equity schemes to ensure that there are no inconsistencies between the treatment of employees in different tax brackets in particular to ensure that, from a tax perspective, higher income earners are not benefitted to a greater extent than lower income earners.