Te Pāti Māori has unveiled its “Kiwi Tax Plan”, pitching it as a policy for everyone, with zero tax on the first $30,000 earned by every New Zealander.
It estimates that under the plan, 4.5 million people will pay less income tax.
“This is a policy for everyone. Whether you are a cleaner, a nurse, a teacher, a tradie, a pensioner or raising a whānau, we want you to keep more of what you earn,” a spokesperson said.
“People across Aotearoa are feeling the squeeze. The kai bill is up. Housing costs are up. Power is up. Everything is taking a bigger bite out of the household budget.
“Our answer is simple: put pūtea back in people’s pockets and give Aotearoa some room to breathe.”
This pitch is similar to what countries have like for those working in Australia, where the first $18,200 AUD ($21,818 NZD) is tax-free, and in the United Kingdom it is £12,570 GBP ($28,705 NZD).
To make up for this, those who earn more will have to pay more, like the tax in Australia and the UK.
| Income | Current Tax Rate | TPM: Income | TPM Tax Rate |
|---|---|---|---|
| 0 - $15,600 | 10.5% | $0 - $30,000 | 0% |
| $15,601 - $53,500 | 17.5% | $30,001 - $60,000 | 15% |
| $53,501 - $78,100 | 30% | $60,001 - $90,000 | 33% |
| $78,101 - $180,000 | 33% | $90,001 - $180,000 | 39% |
| $180,001 and over | 39% | $180,001 - $300,000 | 42% |
| N/A | N/A | $300,001 and over | 48% |
The party is also wanting to introduce a wealth tax, which it says will only affect the wealthiest three percent in Aotearoa.
It would tax individuals with net wealth over $2 million, starting at 1.5 percent. That rises to 2 percent for wealth between $5 million and $10 million, and 2.5 percent for wealth over $10 million.
“This isn’t about Māori versus non-Māori, or workers versus business. It’s about building an economy that works for the overwhelming majority of people who call Aotearoa home.
“4.5 million people (97%) pay less income tax. The wealthiest 3% contribute more. That’s what a fair economy looks like.”
This is to offset their plan to remove GST cost from Kai for those earning less than $60,000 a year, but giving “Kai Credit”, which it says would be worth up to eight weeks of free kai per year.
Corporate tax and more
Te Pāti Māori wants to raise company tax from 28 percent to 33 percent, while also introducing a 5 percent tax on the value of profits transferred offshore.
Inland Revenue Department, the Serious Fraud Office, the Financial Markets Authority and the NZ Financial Intelligence Unit would also see a $1 billion investment, to “eliminate aggressive tax avoidance”.
The plan also seeks to reintroduce Stamp Duty of 5 percent, which was abolished back in 1999; it will exclude first home buyers with purchases under $1 million.
Other tax also includes a 33 percent on land banking and a 2 percent on vacant homes.
This tax plan is different from the National and Act Parties, who have both announced that, if elected, they will not implement any new taxes.
