Tax Policy was a focal point of the election campaign. Summarised below are the current status of the new Government’s tax (and selected other economic) policies.
Largely, they reflect Labour’s position. We have assumed that if a NZ First or Greens
policy is not specifically mentioned in either agreement, then Labour’s policy applies.
The pre-election policies of the three Government parties is included for comparison.
Labour’s election tax policies included:
- Reversing the Previous Government’s 1 April 2018 Tax Cuts with Labour’s Families Package from 1 July 2018.
- A Working Group to consider possible options for further improvements in the structure, fairness and balance of the tax system. Implementation of any recommendations will be deferred until after the 2020 election.
- Expanding the bright-line test period for taxing gains on sale of residential investment properties from 2 to 5 years and ring fencing rental losses.
- Reintroducing the R&D tax credit regime at 12.5%.
- Additional IRD funding to combat multinational tax avoidance.
- Support for a regional fuel tax for Auckland.
Added to these are a potential small business tax cuts (to help offset the proposed
minimum wage increase) and possible consideration of environmental taxes as part
of broader climate change objectives.
In terms of timing, legislation of the Families Package and establishment of the Tax Working Group are part of Labour’s “100 day” plan. The new Minister of Finance has also indicated that the extension of the bright-line test period will be a priority.