Tax policies
Oct 11

Tax policies

Summary of the Tax policies of the four parties polling over 5%

A – Individual Tax Rates

1. All parties (Labour, National, Greens, ACT) have a similar policy for income between $0 and $48,000 with tax rates as follows:

$0 – $14,000 10.5%
$14,000 – $48,000 17.5%


2. National and ACT are the 1st to reduce taxes from this point (National on a temporary basis from December 2020 until March 2022) as follows:

National
$48,000 – $64,000 17.5%
$64,000 – $70,000 30%

ACT
$48,000 – $70,000 17.5%

Labour and Greens are essentially unchanged
$48,000 – $70,000 30%


3. For income earned over $70,000 the parties differ as follows:

National
$70,000 – $90,000 30%
$90,000 + 33%

ACT
$70,000 + 33%

Labour
$70,000 – $180,000 33%
$180,000 + 39%

Greens
$70,000 – $100,000 33%
$100,000 – $150,000 37%
$150,000 + 42%

B – Other Tax Changes

Labour have not announced any further significant tax changes

National have proposed a series of changes as follows:

  • A temporary immediate deduction for all capital asset purchases in the next 16 months that have a cost of less than $150,000 (the current threshold is only $5,000)
  • a doubling of the depreciation rate for assets with a purchase cost in excess of $150,000
  • a full deduction for all assets that have then written down below $3,000
  • An increase in the provisional tax threshold to $25,000 (up from the current $5,000)
  • an increase in the GST registration threshold to $75,000 (up from $60,000)
  • amendments to use of money interest imposed by the Inland Revenue Department to “fairer rates”
  • The repeal of the rules imposing ring fencing of residential property tax losses
  • a reduction to the bright line test which taxes residential property sales from five years back down to 2 years

Greens have proposed the following changes:

  • a new net wealth tax of 1% on an individual’s wealth above $1 million
  • this new net wealth tax would increase to 2% on an individual’s wealth above $2 million

ACT is proposing a temporary cut to the rate of GST from 15% down to 10% until the end of June 2021

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