Election 2020 - Party Policies - Tax
25th Jul 20, 5:56am
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Tax
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- Proposed 5-point cut in GST would conclude in June 2021, while our income tax cut will be permanent.
- Cut the 30% tax rate
- Read more here.
- Productive and sustainable work and enterprise should be encouraged and speculative investment in non-productive assets should be discouraged.
- Taxes should be reallocated away from income and towards resource use, waste, and pollution.
- Those in society who have the least ability to pay tax should pay the least as a proportion of their income, while those who can pay more should do so and contribute to the welfare of society in this way.
- Concentration of income and wealth should be discouraged and the gap between rich and poor narrowed.
- New Zealand's local economy should be strengthened and foreign purchases of local assets should be limited.
- The tax system should be consistent, fair, transparent and simple, and avoid unintended consequences.
- Read more here and here.
- On personal income earned over $180,000 a new top tax rate of 39% will apply – this change affects 2% of earners.
- Extra revenue raised will be used to protect health and education, control debt, and support the recovery plan.
- No new taxes, or further increases to income tax next term.
- Won’t raise fuel taxes.
- Continue closing tax loopholes to make sure multinational corporations pay their fair share.
- Read more here.
- Deliver massive tax stimulus for hard working New Zealanders, putting more than $3000 extra in the back pockets of the average New Zealander.
- Increase tax thresholds by lifting the bottom threshold from $14,000 to $20,000, the middle threshold from $48,000 to $64,000 and the top threshold from $70,000 to $90,000.
- These changes will be in place from 1 December 2020 to 31 March 2022. More than 2.6 million New Zealanders will benefits from these tax cuts, including more than 1 million New Zealanders who will benefit by more than $2500.
- Link income tax brackets to inflation, ensuring income taxes are adjusted every three years in line with the cost of living and allowing New Zealanders to keep more of what they earn.
- Amend the Income Tax Act so tax thresholds are adjusted every three years in line with the cost of living. That will mean that within a year after every election, Treasury will advise the Government on how much the thresholds should be adjusted for inflation.
- Read more here.
- Continue to improve the penalty framework for tax evasion
- Initiate a review into the double-taxation of ‘tax like’ instruments such as removing GST on rate
- Explore the feasibility of introducing a lower business tax rate for exporters and import substitution manufacturers
- Introduce a 100% depreciation rate for business equipment worth up to $20,000 for each item and further for approved capital outlay (exclusive of GST)
- Amend Capital Limitation Rules in the Income Tax Act to treat seismic strengthening as “repairs and maintenance”
- Continue to promote a simple taxation system by opposing complicated tax initiatives such as a comprehensive capital gains tax
- Read more here.
- Overhaul of the tax and welfare systems in New Zealand to make them modern, simple and fair. This will be achieved by introducing a:
- Read more here.
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