Tax Working Group suggestions for reducing taxes

The Tax Working Group’s proposal for taxing more capital gains could raise roughly eight billion over the first five years.

The Government has asked for suggestions for how that money could be used to reduce taxes so that New Zealand’s total tax take doesn’t increase...

The Group has come up with a range of ways this could be done that would support individuals and businesses.

Lowering personal income tax

One way to cut taxes for individuals is by allowing them to earn more at the lowest tax rate. This would benefit, all full-time workers. It would especially support those transitioning into work and help reduce inequality.

Encouraging saving

Another way is by reducing taxes for KiwiSavers, helping people save more for retirement. These reductions could mean that low and middle income New Zealanders pay less on their KiwiSaver, even if capital gains on their KiwiSaver accounts are taxed.

Supporting businesses

Other measures could support businesses to grow, be more productive and lower what they spend complying with our tax rules. These actions could be cost-savers for businesses and help them balance out any extra costs they may face if the Government decides to tax more capital gains.

Reducing taxes is only one option the Government has for improving the wellbeing of New Zealanders.  The Group has encouraged the Government to consider other measures as well.