HomeNZ PoliticsNational Party unveils its tax plan

National Party unveils its tax plan

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National Party unveils its tax plan

National plans to introduce new taxes on foreign property buyers, offshore online gambling and immigration levies to pay for its tax cuts.

It would also reinstate commercial building depreciation tax, which Labour planned to use to pay for its GST-free fruit and vegetables, and make more extensive cuts to the public service – though it says this would exclude non-core and frontline agencies.

Funds raised for tackling climate change through the Emissions Trading Scheme would also be paid out directly to families through a climate dividend – a policy prospective governing partner ACT has long held.

National had released some details of its tax cuts, billed as the “Back Pocket Boost”, ahead of its announcement.

Combined with the FamilyBoost tax rebate policy, the cuts would mean a family with children on an income of $120,000 would keep up to $250 extra a fortnight. Without children, they would keep $100 a fortnight.

Those on lower incomes would keep less of their earnings, with someone on $60,000 a year keeping $50 a fortnight; a full-time worker on minimum wage would keep $20 a fortnight; a superannuitant couple would have $26 extra a fortnight.

Earners with an income of more than $78,100 would have the benefits of the tax cuts capped at $40 a fortnight.

Finance Spokesperson Nicola Willis said this was expected to cost $14.6 billion over four years.

It would be funded through the four “targeted revenue measures” she had signalled earlier in the week, which include a 15 percent tax on foreign buyers of houses worth over $2 million, closing a tax loophole by ensuring offshore operators of online gambling services paid tax, and moving to user-pays immigration levies which would exclude tourist visas.

“Our Back Pocket Boost tax relief plan does not require borrowing and will reduce pressure on inflation. It has been designed to be self-funding so that National can guarantee tax relief for working people, even if Labour leaves the government books in a mess, as is predicted,” she said.

She also repeated National’s commitment to increase funding for frontline health and education every year if it wins the election in October.

At the policy announcement Luxon said: “This plan confirms that a National government can do what we’ve said all along that we will do, which is to put money in the back pockets of New Zealanders as part of a prudent, fully-funded and balanced tax plan.”

The “squeezed middle” was being left behind, Luxon said.

“These are New Zealanders who work hard, sometimes juggling multiple jobs and family responsibilities, but high inflation, high interest rates and high taxes are eating away at their incomes. But I’m telling you, hope and help are on the way because a National government will deliver for a squeezed middle.

“These workers deserve to keep more of their earnings, and I have every confidence that they will spend their extra cash more wisely than any Labour government can. This package is deliberately aimed at helping middle New Zealand, and getting our country back on track.”

“As well as providing tax relief, we are going to tackle the underlying drivers of inflation and we are going to bring it down, and lower inflation will almost certainly mean lower interest rates, and quite simply, New Zealanders will be better off with a National government.”

Willis said it was an exciting day.

“Important context for our plan is the sheer volume of government spending that is occurring under the Labour government. This year, Labour will spend 80 percent more than it did in its first year of office, amounting to $1 billion more in government spending every week.

“The government’s tax take has risen significantly to fund that increasing spending with the tax take up more than $100 million a day. National’s concern is not only has the government failed to deliver improvements and public services with all of this spending, but that the tax burden is falling disproportionately on working people. They are paying higher tax rates on their incomes, and on their petrol, while also facing higher rents and costs in their lives.

“This is happening at the same time as the government is prioritising support for profitable polluters, who are continuing to receive subsidies while the backroom bureaucracy continues to grow and while foreign firms are avoiding tax on domestic activities. The balance is all wrong.”

“In terms of these changes and how they break down, we have achieved the income tax relief across a package which is worth $3.1 billion in its first year, rising to a cost of $4b in 2027-28. The total value of the tax package we are announcing today is $14.6b.

“The vast bulk of this tax package is for income relief, with $12b of that $14.6b going to income relief.”

There would be a shift in income tax brackets to compensate for inflation, introduction of a FamilyBoost childcare credit of up to $75 per week and expansion of eligibility for the independent earner tax credit so modest income earners get more relief, she said.

“This package also increases support via the Working for Families system, in recognition of the fact that parents with children are doing it particularly tough. We’ve increased the tax credit by $25 and we also lift the abatement threshold for the In Work tax credit from 1 April 2026.

“In terms of the timing for these changes, the full relief will be available from 1 July next year. The WFF changes will be available a little earlier, on 1 April next year.”

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18 COMMENTS

  1. No tax expert or anything else but reading gives me the impression that National have put a lot of work into this and is probably quite sound, certainly better than 10 cents off a carrot. Will the bulk of New Zealand worker/voters read and comprehend or will they just hear the soon to be broadcast negative comments from the Negative Media and Labour Parties.

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    • …Will the bulk of New Zealand worker/voters read and comprehend…?

      Ah, no
      the bulk will not

      people vote on emotions and half-formed opinions
      We actually saw more people vote logically in 2020 in the USA based on Trump’s actual record than I have seen before.
      In NZ in 2020 the dumb sheeple went very emotional and feelzy.
      eg. the US voting GW Bush back in 2004 after his 4 years was beyond tribal. It was feral.

      Facts have nothing to do with it.
      A significant number of voters are tribal. I would imagine a minimum of 40% and up to 65%

      And the way this crapola was presented it is light on facts and heavy on emotion.
      It is light and fluffy to fit with the ‘teal trifecta’

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    • Talkback has given it the thumbs up, even from some claiming to be Lefties. It’s a vote winner unless Chippy and Robbo can come up with something better. I believe they still have some tax policies to release?

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  2. In the six long years of waste that is Labour’s legacy the muster of public service employees has increased by 14,000. Keep in mind that we have about the same number of police at the front line & less people doing anything worthwhile in the health sector. The increases have been to the parasite class who show up occasionally at Oranga Tamariki + 49%, Statistics + 49%, MBIE + 53%. There have been huge increases at the MOH, Transport NZ, MSD & the Min for the Environment. Many of the extras have been in spin & communications.

    The entire lot could be sacked tomorrow & the only loss would be their combined weight anchoring unnecessary office space.

    Finance Spokesperson Nicola Willis has $1,271,200,000 of low hanging fruit there & that’s only the wage bill. Then you could wipe out entire departments that do nothing useful eg Dept of Island Affairs, Dept of Women’s Affairs. With 448,200 or 18.7% of the total NZ workforce on the government tit the potential for savings is immense.

    Stats from https://www.stuff.co.nz/national/politics/129817523/more-work-or-out-of-control-bureaucracy-labours-swelling-public-service

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  3. Nothing in that communist cesspit “The Standard”. Maybe they shell shocked.

    Sorry they have reacted… But I won’t link to that pit of vipers. However, the usual crap has been sprayed onto the website.

    Robbo the Rat Fucker had lots to say

    “National’s dodgy tax plan will make many families worse off through their cuts to early childhood education, cheaper public transport and public services. Their tax and burn plan will also pour petrol on the housing market that Labour has worked hard to rein in,” Grant Robertson said.

    Voodoo costings for new taxes mean more holes in National’s fiscal plan
    Billions of dollars of cuts to public services
    Hanging first home buyers out to dry by getting rid of foreign buyer ban
    An end to climate action
    Cutting 20-hours free ECE for 2-year-olds and free public transport for children, students, and low-income and disabled Kiwis.
    “National’s cuts to the public services are more than double those the Government announced on Monday. National will be asking for 8 percent cuts in many agencies and therefore they will not be able to protect frontline services. Despite what they say, the fine print of their document says health and education will be cut to find savings.

    “The Government announced earlier this week moderate restraint of public service spending, which would protect frontline services – National’s cuts will gut the agencies that support Kiwis.

    “National’s costings of the revenue from their new taxes look dodgy. It appears they have overestimated revenue from a number of sources. The more analysis there is the bigger the hole in National’s fiscal plan gets.

    “This comes on top of the nearly $10 billion hole in national’s transport plan and failure to account for other spending and promise they have made.

    “National is laying out some voodoo costings today with their claim to be able to grab $740 million per year from foreign buyers. The plan relies on more and more foreign buyers coming into the New Zealand market every year, despite putting a tax on them. It also beggars belief that there are that number of homes available every year to be bought up by foreigners to fund National’s tax cuts.”

    National’s plan will also mean dramatic cuts to investment in tackling climate change and making our country more resilient. Once again this shows National’s lack of commitment to real action on climate change.

    “It’s clear that only Labour has the balanced and responsible plan to support Kiwis with the cost of living, grow the economy sustainably and balance the books,” Grant Robertson said.”

    No one actually cares what you say Robertson, Now do us a favour and Fuck Right Off.

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