NZ First on the Capital Gains Tax capitulation

NZ First have prevented the Government from proceeding with any changes to capital gains taxes, despite a CGT being a core policy of Labour, backed by Jacinda Ardern, and despite it being something Greens have wanted for a long time (and James Shaw stated earlier this year that the Government didn’t deserve to be elected if they didn’t introduce a CGT).

New Zealand First Leader media release:

Tax Working Group Report

New Zealand First Leader Winston Peters has welcomed Cabinet’s decision not to implement an extension of capital gains taxation, following the Prime Minister’s statement in response to the Tax Working Group Report.

“This decision provides certainty to taxpayers and businesses. We in New Zealand First wanted first and foremost for New Zealanders to have time to discuss and debate the contents of the report,” stated Mr Peters.

“During that time we have listened very carefully to the public.

“There is already an effective capital gains tax through the Bright Line test brought in by the last National Government and New Zealand First’s view is that there is neither a compelling rationale nor mandate to institute a comprehensive capital gains tax regime,” said Mr Peters.

“We also welcome the announcement that the coalition government will be urgently exploring options with the Inland Revenue Commissioner, in concert with central and local government, for taxing vacant land held by land bankers and reviewing the current rules for taxing land speculators. Tightening these rules was a priority for New Zealand First.

“Current tax policy, rigorously enforced by an Inland Revenue Department properly resourced will by itself 1) improve the administration of existing tax policy, and 2) target those multi-nationals not paying their fair share of tax,” Mr Peters said.

There was nothing about a CGT in the Labour-NZ First coalition agreement. This was the only reference to tax:

  • Increase penalties for corporate fraud and tax evasion.

Peters via Twitter yesterday:

Despite the claimed hearing and listening, Peters has done what he has said he would do for a long time.

During the 2017 election campaign (Politik): Peters ready to throw spanner in Labour’s capital gains tax plans

Peters says he is not ready to support any moves labour might want to make to extend capital gains taxes.

Finance spokesperson Grant Robertson has arrived at a neat compromise. Labour would set up a Taxation review once it got into Government.

Phil Twyford (on The Nation): “In the first three years we’re going to do a taax working group that will redesign the entire tax system”.

Robertson (on NZ Q&A): “We will have a working group that will have a look at getting a better balance into our tax system between how we tax assets and how we tax income”.

Peters though is adamant.

“I am not for an extension of the capital gains tax” he told POLITIK.

Peters is critical of the review and Labour’s plan to provide details on it’s water levy policy after the election.

“How many times can you get away with this sort of nonsense” he said.

So why did Labour insist on going ahead with the Tax Working Group that had an aim of recommending a capital gains tax?

It seems to have been a wasted exercise, unless the intention was to provide Peters with an opportunity to say NO CAPITAL GAINS TAX.

Leave a comment

25 Comments

  1. artcroft

     /  18th April 2019

    Well at least the Greens played their hand well. Didn’t rock the boat or make counter demands of Peters, stand on principle or anything like that, things which might have endangered their crown limos and access to the baubles of office.

    Reply
    • Corky

       /  18th April 2019

      They love the GREEN outdoors, Arty..and they love the GREEN in their pockets. I wonder how the Metiria is doing? Maybe she has told the Greens horror stories about life in the ”real world?”

      Reply
  2. lurcher1948

     /  18th April 2019

    National won, National won,Simon Bridges is now safe…so safe….wait what are we going to hit Jacinda with?everyone’s contented now and Judith Collins is still out there waiting

    Reply
  3. David

     /  18th April 2019

    Duh..its a political set up perpetrated on the taxpayer to garner support for the individual parties.
    Shaw gets to huff in a very english way, Ardern puts on her pouty face and Peters gets to save the day and the taxpayer gets to pick up the tab.

    Reply
    • Blazer

       /  18th April 2019

      and Simon the cabin boy…just…smiled.

      Reply
      • artcroft

         /  18th April 2019

        Yes I think Bridges can smile. Unlike Labour, who campaigned against their own policy in the flag debate, National have stayed true to their beliefs. This is becoming rarer today, as per the greens and labour’s bait and switch tactics. Only National, Act and NZF mean what they say.

        Reply
        • Duker

           /  18th April 2019

          A new flag wasnt one of nationals election policies, wasnt even something Key put through his cabinet first – it was a captains pick, they were forced to go along with. And even after setting the rules to get his choice (fernleaf) he then changed the final 4 to final 5 with Red peak.
          Key should have been bi partisan and come up with a process after working with Labour – he didnt

          Reply
          • artcroft

             /  18th April 2019

            What a load of revisionist crap. Labour didn’t want a new flag if it wasn’t going to be put through by them. Simple as that.

            Reply
    • duperez

       /  18th April 2019

      And those who didn’t want a CGT who hate Labour can rollick in their deck chairs with only one dilemma, to work out which gives them the most pleasure – the escape from penury or the embarrassing political backdown for their bêtes noires.

      Reply
      • David

         /  18th April 2019

        It’s a tough spot to be honest.

        Reply
      • Duker

         /  18th April 2019

        penury ? Does that mean a new Audi every 5 years instead of 3 ?

        Reply
        • David

           /  18th April 2019

          Range Rover Velar at the moment and its only a year old so plenty of time to ponder what is next.

          Reply
          • Blazer

             /  18th April 2019

            how many times has the Raj Rover broken down so far…David?

            Reply
            • David

               /  18th April 2019

              Never missed a beat Blazer, I have a warranty and a service plan just in case as they arnt the most reliable brand. However there is nothing nicer than owning one.

  4. lurcher1949

     /  18th April 2019

    Only cost 1/12 of Sir Keys vanity project (the tea towel saga) and the unwashed masses are happy…win win

    Reply
    • Duker

       /  18th April 2019

      Key had his own 2010 Tax Working Group ( amoung another 90 or so reviews and enquirys), results which was ignored until after the 2011 election found out the increase in GST part was operative.
      eg
      page 11 of TWG 2010 report

      11 Most members of the Group consider that increasing the GST rate to 15% would have merit on efficiency grounds because it would result in reducing the taxation bias against saving and investment.
      https://www.victoria.ac.nz/sacl/centres-and-institutes/cagtr/pdf/tax-report-website.pdf

      Reply
  5. Alan Wilkinson

     /  18th April 2019

    Only the loony Left thought a tax on inflation and renters is a great idea. Clueless till the end.

    Reply
    • Blazer

       /  18th April 2019

      you prove how clueless you are every day…Al.

      Reply
    • Duker

       /  18th April 2019

      Why is house ‘inflation’ much greater than wages, or everyday prices ?

      let me guess, could it be because its untaxed compared to putting bank?

      Reply
      • David

         /  18th April 2019

        Supply and demand, we have a fast growing population and idiotic building code and planning laws both of which were campaigned on hard by Labour and just like child poverty and green house gas emissions its all going the wrong way because Ardern is just an empathetic collection of slogans with rehearsed expressions.
        Having said that I think she is quite lovely just think she could be much better utilized doing something else.

        Reply
        • Duker

           /  18th April 2019

          So Dunedin has had supply and demand problem?
          How about Patea or Wairoa or Turangi ?

          Reply
          • Alan Wilkinson

             /  18th April 2019

            You can buy a house for $160k in Kaikohe or Patea. You just can’t build one for that.

            Reply
        • Fight4NZ

           /  19th April 2019

          Yes. Demand.
          What would National have done for an economic policy if they hadn’t sold citizenship on an industrial scale and won votes on the back of the feel-good from the house wealth illusion?
          Stabilised house prices? Had to focus on real productivity? Deprived their buddies the chance to pretend controls on land use and environment standards are the evils keeping less well off out of home ownership?

          Reply
      • Alan Wilkinson

         /  18th April 2019

        Why is house ‘inflation’ much greater than wages, or everyday prices ?

        For exactly the same reason as why local govt rate rises have been much greater than wages or everyday prices since 1987.

        Reply
  6. patupaiarehe

     /  19th April 2019

    At least he’s delivered on something. So much for ending punitive taxes on “The working man’s pleasures”

    Reply

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