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New Zealand Labour Outlines Tax Plans

by Mary Swire,, Hong Kong

18 September 2017

New Zealand's Labour Party, which is edging ahead of the incumbent National Party-formed government in recent polls, has proposed a number of tax changes ahead of the September 23 election.

Labour has said that it would hike tax on those who sell a property within five years of its purchase, to discourage property speculation.

The party has also said it would end secondary taxation, which taxes a second source of personal income at a fixed rate, rather than under the progressive individual income tax regime, which primary or main sources of income are taxed under.

Another of Labour's policies aims to make tax payments easier for businesses by allowing them to pay in regular instalments at a rate they can adjust. It has previously said that the current system of having to estimate their annual income and paying tax in three large instalments throughout the year can leave companies "with a big bill at the end of the year which can push a small business to the wall." The party said that it would scrap late penalties for provisional tax, and raise the level at which provisional tax kicks in.

Labour said that it would not make any changes to personal income tax, corporate tax rates, or goods and services tax.

It added: "To be absolutely clear, under Labour, the family home and the land around it will never be taxed. There will also be no inheritance tax."

Meanwhile, Labour plans to tackle pollution by introducing a clean water royalty and putting a levy on bottled water exports.

TAGS: individuals | inheritance tax | Finance | tax | small business | business | value added tax (VAT) | goods and services tax (GST) | tax rates | New Zealand | individual income tax | services

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