Tax taking longer to pay this year

New Zealanders on average will be taking about five months to pay off all their tax obligations this year, a week or so longer than in 2005, according to an accountancy firm.

Staples Rodway today estimated its so-called "tax freedom day" for 2006 will be in late-May or early-June.

Last year the firm said it took the average New Zealander 143 days, until May 24, to be free of obligations for income tax, local body rates, and other taxes such as petrol tax, cigarette tax and alcohol levies.

Staples Rodway tax director Roger Thompson today said research indicated Australians were better off than New Zealanders when paying their tax debts, adding to arguments persuading New Zealanders to cross the Tasman.

The work was the only internationally benchmarked research to compare New Zealanders directly with taxpayers in Australia, Britain, and the United States.

This country's "tax freedom day" had deteriorated significantly since 2002, Mr Thompson said.

"Over the last few years the deterioration has occurred despite strong GDP growth. This year though, the combination of strong tax revenue growth and a sharp slowing in GDP growth indicates we are facing a further decline."

The figures released last year said it took the average Australian taxpayer until May 15 -- nine days earlier than in this country -- to pay all tax obligations in 2005. In the US the date was April 11, while in Britain it was May 31.

Staples Rodway said it expected to announce the definitive date for 2006 in May, after which people would be able to work out their personal date on the firm's website

- NZPA