Media statement
Tuesday, 13 February 2007

Big tax changes coming, says Dunne

United Future leader Peter Dunne says New Zealand households will face big tax changes over the next few years.

Speaking in this afternoon's debate in Parliament on the Prime Minister's Statement, Mr Dunne said that the business tax changes, and any associated adjustments to personal tax to be announced later this year were just the start of a series of changes that would affect New Zealand households over the next few years.

"In April next year, I expect a more generous tax rebate regime for individual and corporate donations to charities to take effect, following the review undertaken in accordance with the United Future/Labour confidence and supply agreement.

"Early next year, I will be releasing a government discussion paper on income splitting – the taxing of households on a group rather than an individual basis – which has the capacity to revolutionise the way we treat New Zealand families for tax purposes, and slash their tax bills.

"Once KiwiSaver is introduced in July this year it will only be a matter of time before the issue of making it compulsory and applying to all employees will arise.

"I believe that if there is a political consensus in favour of compulsory saving at that time, we should seize the moment and make KiwiSaver a compulsory savings scheme.

"And then, we can look to future personal tax cuts which could be significant, and over and above any tax changes in the meantime, being linked to superannuation contributions," he said.

On other matters, Mr Dunne said he expected to see the development of a new National Medicines Strategy aimed at promoting the quality usage of pharmaceuticals, which he is overseeing, to be completed by the end of this year.

He said that increasing pressure on public hospital facilities and mounting waiting lists for non-urgent surgery meant New Zealand could no longer afford to operate the public and private hospital systems on a parallel basis.

"There needs to be closer integration with greater use to be made of private hospital facilities where appropriate, and this is an issue United Future will be focusing on this year as well," Mr Dunne said.

Ends

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