This paper provides advice on a range of potential tax changes with a negative fiscal impact. The Group requested analysis of this list of options at its meeting on 29 June.
The Group’s Terms of Reference note the Government’s objective for the tax system to promote the long-term sustainability and productivity of the economy. The Group has discussed these issues a number of times.
This paper considers three revenue reducing options related to tax rates and thresholds:
• decreasing income tax rates, or increasing income tax thresholds;
• inflation indexing income tax brackets; and
• decreasing the GST rate.
This paper looks at the empirical question of whether buildings do, in fact, depreciate and considers whether the decision to remove depreciation on buildings in 2010 should be revisited.