Some interesting “Wealth Tax” ideas in there and proposed changes that would net an extra ~$5B (estimated).
- Big corporations tax: The corporate tax rate will be increased from 28 percent to 33 percent for big companies with annual turnover exceeding $30 million. This will impact about 0.7 percent of businesses (e.g. banks, supermarkets and energy companies).
And new income tax rates:
Current
| Income band | Tax rate |
|---|---|
| 0 - $15,600 | 10.5% |
| $15,601 - $53,500 | 17.5% |
| $53,501 - $78,100 | 30% |
| $78,101 - $180,000 | 33% |
| $180,001 and over | 39% |
Proposed
| Income band | Proposed rate |
|---|---|
| $0–$9,999 | 0% |
| $10,000–$19,999 | 10% |
| $20,000–$39,999 | 17.5% |
| $40,000–$59,999 | 25.5% |
| $60,000–$79,999 | 30.5% |
| $80,000–$159,999 | 33.5% |
| $160,000+ | 45% |
| – |
There are a few things to like here. I would rather the number were a little more clear.
I would rather see the total tax take; not just the differences. Where thy say “tax setting changes -$2,335M” I would like to know is that 10% less or 2%; so I could compare it to the proposed tax increase from the other sources they are expecting.
From budget 24/25 contributions from individual tax were $62.2B; which gives us a better understanding of how these numbers stack up.
So individuals will collectively get about a 3.75% tax cut; weighted to the lowest income earners.
Corporate tax was $18.2B which if I’m reading their policy correctly, will increase to $20.15B. Which is about a 10% increase.
New taxes and restoring landlord taxes will gain an additional $5.37B.
So for the entire $136B crown revenue the increase is ~4%.
As an Opportunity supporter I have to contrast it with their policy to see how it stacks up:
Yeah, TOP really have this figured out. I’m planning to vote for either them or Labour.
The Green party just have too much baggage to be taken seriously.
Opportunity are running a party vote campaign. So vote opp for party and labour for candidate… Get the best of both world’s.
That’s definitely my plan. I’m in Remutaka electorate, which Hipkins is all but guaranteed to win.