New Zealand Law Society - Minister announces tax plans

Minister announces tax plans

This article is over 3 years old. More recent information on this subject may exist.

Revenue Minister Stuart Nash has outlined the Government's priorities for taxation in its first 100 days in office.

Mr Nash told the Chartered Accountants Australia New Zealand annual tax conference that the tax system is good, but it can be better.

Mr Nash said that within 100 days, the Government will:

Repeal the previous government’s tax cuts and redirect that to families in need, and what we consider is more targeted assistance. "With so much investment needed to support our social services and our infrastructure, now is not the time for tax cuts," he said.

Legislate to pass the Families Package, including the Winter Energy Payment, Best Start and increases to Paid Parental Leave.

Establish the Tax Working Group, "led by the Minister of Finance and myself".  

Mr Nash says that by Christmas the terms of reference and membership of the Tax Working Group will be released.  

The terms of reference have now been announced. The group will be chaired by Sir Michael Cullen.

"We want a group of experts to advise us on the future of the tax system," Mr Nash told the accountants' conference.

"Let’s be honest, no one usually likes paying tax, so IRD have a duty to make it as easy as possible to comply while still taking into account the integrity of the system. I know it’s a very fine balancing act, but we should always be looking for ways to improve."

Mr Nash says that although there have been a number of Tax Working Groups over the years, our tax system hasn’t had a major overhaul in a generation.

"So the first question for the Working Group will be: 'is our tax system fit for the future?' Perhaps the Working Group will say that the system is fine and they will come back with no substantive recommendations. But I suspect there are inherent inequities in the system that need addressing."