Friday, August 30, 2019
New Zealand's opposition National Party has released its plans for tax reform, announcing it would review whether to lower the corporate tax rate.
The party has the most seats in Parliament, across from the incumbent Labour Party. Labour has formed a coalition with New Zealand First. The Green Party has also said it will support the Labour Government in key votes, enabling it to garner a majority. However, the next federal election must take place before November 2020.
National has proposed a number of tax changes, in its newly released "Economic Discussion Document."
The document proposes removing inflation from the calculation of taxes on savings, a review into whether the New Zealand corporate tax rate, at 28 percent, is competitive, and the possible introduction of accelerated depreciation incentives.
National said: "New Zealand has one of the highest company tax rates in the OECD at 28 percent and we collect the fourth largest share of tax in the OECD from companies. Tax is one of the single largest costs for businesses and can be the difference between a business surviving or not."
"To encourage greater levels of investment, we're asking New Zealanders whether we should accelerate depreciation for business assets and whether the company tax rate is becoming uncompetitive."
"We'll also consider whether there's merit in targeted tax relief for small businesses, like that which exists in Australia. That would mean a lower tax rate for small businesses below a certain revenue threshold."
"National will consider further tax policies that will reduce the burden on families leading into the 2020 election."