Election tax promises, which party is promising what?
Here is a brief recap of a number of Parties election tax policies.
Supplied courtesy of Richard Ashby, tax specialist from Gilligan Sheppard.
- Increase the tax on incomes more than $180k to 39%.
- No other changes to other existing tax brackets and rates (still no mention of any change to the trustee rate).
- No other new taxes introduced during the next parliamentary term.
- No new taxes or increases to existing taxes.
- Within three years, adjust income tax brackets for inflation and regularly thereafter.
- Temporary increase in tax thresholds from 1st December 2020 to 31st March 2022 – $14k increased to $20k; $48k to $64k, and $70k to $90k.
- To improve the rental market – remove ring fencing of rental losses and reduce five year bright-line period back to two years.
- Repeal the Auckland regional fuel tax.
- A three-tiered personal marginal tax rate regime as opposed to the present four-tiered system, dropping the 30% rate so that you would be taxed at 17.5% from $14k to $70k.
- Cutting the GST rate to 10%, but only until June 2021.
- Temporarily exempting redundancy payments from tax.
- A vacant house tax. Leave your house unoccupied for more than three months in any one year and face a 2% tax on its capital value.
- A capital gains tax of 2% on properties other than the family home.
- Introduce a wealth tax – 1% where individual net wealth over $1m, 2% where over $2m. Application to those using trust structure and ability to defer the tax on a home until it is sold.
- Introduce two new income brackets from 1st April 2021 – income over $100k taxed at 37% and over $150k taxed at 42%.
- Increased penalties for tax evasion.
- No increases in personal or business taxes and oppose any plan to introduce a capital gains tax.
- 0% tax up to $35k, lower flat upper tax rates for individuals and businesses.
- Review tax arrangements for multi-nationals.
- No capital gains tax on sales of residential properties and remove GST from real estate fees.
- Removal of GST from food and medicine.
- $10b in tax cuts via changes in bottom tax bracket (first $20k tax free) and petrol tax reductions. 17.5% bracket extended to $60k, 30% to $100k and incomes over $100k taxed at 33%.
- Government charges such as council rates exempt from GST.
- Introduce ability for couples to split income to reduce income tax.
- Repeal of Auckland regional fuel tax.
- Explore replacing GST with a financial transaction tax – Every Transaction Tax.
- Introduce a tax-free universal basic income of $13k pa for those over 18, and additional $2,080 pa per child.
- Introduce flat tax of 33% on all income, which would also apply to companies, trusts and PIE’s.
- Introduce a 33% property tax based on the equity value of each property owned (3%).
- Remove tax from Kiwisaver investment earnings.