Australia will impose a new tax on mining projects, cut company tax rates and boost workers' pension savings in a sweeping pre-election overhaul.

The Government's bank balance is better than forecast ahead of next month's Budget, but its income from tax has taken a hit.

Revenue Minister Peter Dunne has tipped a new property investment tax and lower personal taxes in this year's Budget.

Critics say our obsession with property is draining money away from real businesses, which create jobs and make New Zealand richer.

Finance Minister Bill English has poured cold water on hopes of a cut in the top income tax rate to 30 per cent.

Finance Minister Bill English says aligning the top personal, trust and company tax rates is still on the table.

A proposed overhaul of the tax system brought a cautious response from the Government yesterday.

Finance Minister Bill English says he will be "carefully considering" advice to raise GST and cut personal income tax rates as he puts together his Budget.

The Government has been advised to consider "significant changes" to make New Zealand's tax system fairer and more effective.

John Key has indicated the Govt is open to reform which trades personal income tax cuts for some form of tax on investment property.

Prime Minster John Key has indicated personal tax cuts, as well as wider tax reform, will be on the Government's agenda this year.

The investment portfolios of ACC and the New Zealand Superannuation Fund continued to prop up the government's books as corporate and personal tax revenues dwindled, says Treasury.

The Tax Working Group sees merit in extending the 30 per cent PIE regime to the taxation of other forms of investment income.