The National Party is doing the sums on tax. Photo / Jed Bradley
The National Party is doing the sums on tax. Photo / Jed Bradley
The National Party is redoubling its efforts to put the spotlight on tax this election, launching a calculator on its website that tallies up how much voters stand to gain from its tax policy.
The calculator compares tax savings from a range of taxes, including National’s plan to re-index income tax thresholds to account for inflation that took place between 2017 and 2021, the Auckland regional fuel tax, and its childcare tax credit policy.
Unlike previous tax calculators, it also tallies up how much additional tax people may pay under Labour, particularly once a bill currently before Parliament forces companies like Uber and Airbnb to pay more GST on their services.
The party is also exploiting Labour’s ambiguous position on a handful of “taxes”, like Social Unemployment Insurance, and pokes fun a the possibility of Labour rolling out a wealth tax, a cyclone tax, and charges to pay for Auckland Light Rail, which it lists as possible charges under a third term Labour Government.
Social Unemployment insurance, which would have levied a charge of 1.39 cents on people’s incomes, was put on ice in Prime Minister Chris Hipkins’ first round of reprioritisation - but work was only paused, not cancelled, and National is arguing Labour will resurrect the scheme after the election.
National’s finance spokeswoman Nicola Willis said the calculator showed “how much more income Kiwis would get from National’s commitment to inflation adjust tax brackets, introduce our FamilyBoost childcare tax rebate, and scrap the Auckland Regional Fuel Tax.
“New Zealanders will also be able to see how much more they will pay if Labour is elected this year by calculating how much they would pay for a proposed Jobs Tax and App Tax.
“National knows Kiwis are paying too much tax – and our tax calculator shows just how,” she said.
Willis said the Social Unemployment Insurance scheme - dubbed a “jobs tax” by National - was “far from cancelled, with officials still working on the scheme”.
“The Government is about to introduce a new App Tax and is flirting with the idea of a Light Rail Tax, a Wealth Tax, and even a Flood Tax. You simply cannot trust Labour on tax,” she said.
The calculator tallies up National's tax cuts. Photo / Supplied
“The tax reduction National has announced so far is the minimum we will deliver New Zealanders if we are elected this year. If the economic and fiscal conditions allow, we will go further.”
Hipkins has said he would “honour the commitments that have been made for this term of Parliament” in Labour’s 2020 election manifesto, but refuses to be drawn into ruling in or ruling out anything further.
This, combined with comments about needing to relook at revenue raising following Cyclone Gabrielle has led to much speculation about just what Labour plans to put in its 2023 Budget and election manifesto.
Meanwhile, TOP, trying to get into Parliament also made a play for people struggling with the cost of living.
On Monday it announced a “Teal Deal” between taxpayers and younger generations.
Costing $1.5b the deal came in the form of a “Teal Card” that included fully funded public transport up to 30, with a $1500 credit for bikes, e-bikes and e-scooters.
The deal also included fully funded GP visits, primary dental care, eye checks, glasses and mental health support up to 30.
The package also included a $5000 Universal Savings Boost at 18, which could be accessed if people took an Outward Bound-style course in civic service.
Leader Raf Manji said the “opportunities are endless” with the card.
“The Teal Card and digital app, will be future-facing and drive innovation in service delivery and provision from the public, private and civic sectors,” he said.
