National promises $4.5bn in tax cuts

National Party leader Judith Collins. Photo: Samuel Rillstone/RNZ.

National's promising a short-term package of tax cuts - worth more than $4.5 billion - to kick start the economy.

Leader Judith Collins and finance spokesperson Paul Goldsmith announced the policy this morning.

The changes would be made by significant increases to income tax thresholds, but would only be in place for 16 months, from December this year until March 2022.

Other key aspects of its economic plan are a revised debt repayment target, more generous tax write-offs for new business assets, and a tighter budget for new spending.

National says it would achieve that by a more disciplined approach including suspending Super Fund contributions, and scrapping spending on initiatives like tertiary fees free and KiwiBuild.

The announcement follows the release of the Treasury's analysis of the government books ahead of the election in the pre-election economic and fiscal update on Wednesday, and official GDP figures yesterday that showed New Zealand in its first recession since 2010 - and the deepest fall in living memory.

The party has already promised no new taxes in the coming term, as well as cutting income tax and paying back debt at a faster rate than Labour, while also investing in infrastructure and public services.

It also plans to set up a Border Protection Agency to help manage Covid-19.

In the lead-up to today's announcement, Labour finance spokesperson Grant Robertson said National's economic stance was in a "Bermuda triangle" of trying to achieve three incompatible things at once.

"They both want to increase spending, reduce revenue and dramatically reduce debt. You can't do all of those things at once credibly and I think their plan is lost somewhere in that triangle."

RNZ.




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8 Comments

Tom Ranger

Posted on 28-09-2020 14:12 | By Tom Ranger

@ Re tax cuts Yeah...it seems to be aimed at giving a higher/bigger tax break to the people that pay higher/bigger taxes. Sounds fair to me.

Re tax cuts

Posted on 25-09-2020 14:32 | By Merlin

$8.08 or 2 cups of coffee if your lucky for the lower paid and nearly $60 a week for the better off.Seriously we know where this is aimed.

Tom Ranger

Posted on 23-09-2020 14:54 | By Tom Ranger

@2up Hang on matey.... We earned that money! You know...from a job. Not right to say "Give free money to everyone for doing nothing". More accurate to say Labour does that regularly and the fee’s free first year is just one good example of that. I’ll take the tax cut thanks.

Their Corporate Cobbers

Posted on 23-09-2020 12:44 | By Owen G.

will of course be the the major benefactors leaving the average Kiwi to pick up the under funded tab later on. Owen G.

Students needed for Universities survival

Posted on 19-09-2020 10:32 | By 2up

So National wants to take away students first year fees free. Just when the universities are crying out for more students to attend. Give free money to everyone for doing nothing instead of Labour who is giving out money for people to be productive on shovel ready projects around the country. National cut services, increase dept. and hand out treats for no return. no thanks Judith you have sunk further than ever.

No subtlety

Posted on 18-09-2020 17:37 | By Wundrin

about this being an election bribe. How stupid do they think we are?

get rid

Posted on 18-09-2020 13:36 | By terry hall

national no way, Judith Collins no way ,they are not a peoples government, look at her statement, cut the education, cut the health etc, help the corparates, we will be back to where we were last time they were in screw the poor help the rich, she has been there two long, her and Gerry Brownlee, Dick Smith, and a few others it has become a retirement income, at tax payers expence.

Here we

Posted on 18-09-2020 12:58 | By Merlin

Here we go again Tax Cuts before the election at the cost of more run down services in health,education and social services and probably more asset sales too.

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