Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


New Govt Must Address NZ's Revenue Gap

New Zealand's growing revenue deficit needs urgent attention from its new Finance and Revenue Ministers, says Tax Justice Aotearoa.

"We congratulate the new Ministers of the incoming government - specifically Nicola Willis as Finance Minister and Simon Watts as Revenue Minister," says Tax Justice Aotearoa chair Glenn Barclay.

"However, we hold strong concerns over the affordability of the coalition's tax cut package - which the Prime Minister says will go ahead through a combination of spending reprioritisation and additional revenue measures."

TJA also questions the suitability of proposed tax breaks for landlords, given the widening equity gap between renters and landlords.

National's proposed foreign buyer tax has been scrapped - but questions remain about how the government will fund its promised tax cuts.

"We're wary of the Prime Minister saying policy changes will offset the loss of revenue from that change," says Glenn Barclay.

"We're unconvinced the government's fiscal plan is adequate for its tax cuts to be funded responsibly."

Tax Justice Aotearoa has issued a Briefing to Incoming Ministers (BIM) as an outline of New Zealand's fiscal challenges - and suggests a number of proposed solutions.

The BIM makes clear that Aotearoa’s tax system is not fit for purpose.

It outlines the multiple inequities of the current system, which does not raise enough revenue for the challenges we face as a country - including climate change, poverty & inequality, a changing population, growing demand on public services and ageing infrastructure.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Ideas put forward to address Aotearoa's revenue gap include broadening the types of income that can be taxed, introducing new tax brackets, new taxes such as excess profits tax, better tax transparency (eg. chasing tax evasion), and supporting international tax reform (eg. addressing foreign corporates' tax avoidance).

The BIM also points to a recent poll conducted by the Better taxes for a Better Future campaign - led by Tax Justice Aotearoa - which shows strong public support for progressive tax changes across the political spectrum, including taxes on wealth, capital gains and excess profits.

"There are a number of tax measures that no political parties have ruled out, and we encourage the new Government to consider these, as demand on Treasury's books grows," says Glenn Barclay.

"Tax Justice Aotearoa wishes the new Finance and Revenue Ministers well in their important and challenging work. We look forward to engaging with them on the crucial area of tax reform over the coming years."

© Scoop Media

Advertisement - scroll to continue reading
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National Spreading Panic About The Economy

The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:
...We've been gratified by how many countries want to join with us to work with cutting-edge technologies like in the cyber arena, hypersonics, you can go down a long list and it's great to hear that New Zealand is interested...


Government: Retiring Chief Of Navy Thanked For His Service

Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia... More

Labour: Grant Robertson To Retire From Parliament
Labour List MP and former Deputy Prime Minister and Minister of Finance Grant Robertson will retire from Parliament next month, and later in the year take up the position of Vice Chancellor of the University of Otago... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More

Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More




InfoPages News Channels


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.