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New Taxes For NZ ?

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Here are new taxes being proposed this election

From Stuff

As the election approaches, tax has become a hot topic.

While Labour is yet to unveil its tax policy, National has suggested it could include cutting GST on fruit and vegetables. National has promised to adjust tax brackets for inflation.

But almost all the smaller parties have revealed plans calling for the implementation of new taxes.

Here are some that are on the table.

Wealth tax

Both the Green Party and Te Pāti Māori want a wealth tax.

The Greens would set this at 2.5% on assets, such as properties and shares, worth more than $4 million for couples, minus any debt on them.

The party gave the example of a retired couple with $6.5m in total assets across four properties. They would pay tax on the $2.5m above the $4m threshold, at $62,500 a year.

”They are able to pay this from the rental returns on their properties while continuing to enjoy a comfortable retirement. Alternatively, they could choose to charge the tax against their properties, and defer payment until one of these properties is sold.”

Te Pāti Māori would introduce a net wealth tax of 2% for net wealth over $2m, 4% over $5m and 8% over $10m. This would apply to the combined net wealth of couples.

Land-banking tax

Te Pāti Māori would also implement an “undeveloped land tax” on land that had not begun to be developed within four years of purchase.

The tax would be calculated at 33% of any increase in value of the land since it was purchased.

There will be an exemption for Māori freehold and customary land.

Ghost house tax

Te Pāti Māori would also tax unoccupied homes, at 33% of the current market value of those properties, minus the purchase price. Tac would apply when they were not tenanted for six months.

The party said it was unacceptable that houses be left empty when there was a housing crisis.

Two-tax system

The ACT Party would eliminate the current five income tax brackets and replace them with two. People earning up to $70,000 would pay 17.5% income and tax and those who earned more would pay 28%.

Land value tax

The Opportunities Party (TOP) would apply a land value tax at 0.75% of the value of urban residential land, paid annually.

Commercial, rural, conversation and Māori land would be excluded. People receiving the pension could defer the tax until they sold their properties.

Trust tax

The Green Party would implement a tax of 1.5% on trusts so that people could not move their money into a trust to avoid a wealth tax. This would apply to all assets held in private trusts.

The party gave the example of a woman who moved out of her house and into a retirement village when her husband died.

“The house is valued at $800,000; and she also has $1.7m in a private superannuation scheme. She wants to pass the house on to her kids and grandkids for use as a family bach, and doesn’t want to have to be responsible for the upkeep anymore.

“She decides to put it in a family trust with her children Richard and John as trustees, and herself and her grandchildren as beneficiaries. Richard and John list the bach on Airbnb and make $30,000 a year, while being able to use it for family holidays whenever they like. The trusts tax means they pay $12,000 a year in tax, which is more than covered by the Airbnb income. If Marion had continued to hold the house directly, she would have been liable for a wealth tax of $12,500. The trust tax minimises the risk of trusts being used for tax avoidance.”

I guess we have to wait for Liarbour to announce their policy.
Will it include the dreaded Capital Gains Tax?

6 COMMENTS

  1. This is simple to a simple person like myself.,
    (1) To much wasteful spending,
    (2) To many bludging lifetime losers,
    (3) Not enough money to pay for the above
    (4) The answer ? Tax the shit out of everything that moves except native businesses, IWI and Native lands ,
    You see the remedies to the problems are always the simplest, just ask the geniuses in Tea party Hori..

    6

    0

    • 1,2 and 3 are the blunt truth of the matter, add in the unfunded superanuation burden thats compounding the problem year on year.

      Nz needs to start by removing this charity status bullshit esp to those that are effectively just a business operating in a loophole. Bretheren, iwi, sanatarium etc its so corrupt and costing the country billions every year.
      The natives also dont pay rates on pretty much all their land, the huge increase in rates can also be contributed to large amount of rateable land being excluded.

      But greens and te pati maori think a fair tax system means brown ppl dont pay, wtf in what world is that fair? Thry contribute the least and cost the country the most!

      13

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  2. There is no need to increase taxes: A scouring out of waste in the Wellington govt bureaucracy and across the country by local and regional councils. Cut funding on none essentials. Stop wasting the tax take and the problem will solve itself.

    Remove this sorry excuse of the clown show by entitled lefty school kids wildly spending on the ‘family credit card’. Elect responsible adults with a few clues and personal integrity who work for the economic betterment of the country.

    Miracles could happen but we all know politicians protect and serve themselves first so NZers can go whistle would be the message politicians have always sent on limiting bureaucracy. 💩💩💩💩💩

    7

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  3. I see it as:

    Te Pati Maori – racism and more tax
    Labour – incompetence, racism and more tax
    Greens- Communism, racism and more tax
    ACT – hypocrisy and less tax
    TOP – ridiculousness and more tax

    As a politician said when I was a young ‘un – if a politician is giving you something, they’re taking something away as well”. What are ACT proposing to make up for the lost income…?

    3

    0

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