Ensuring the wealthy pay their fair share

For too long, our tax system has exacerbated wealth and income inequality. It’s time to rebalance the tax system and ensure that the wealthy pay their fair share.

Structurally increase Government revenue

Structurally, the state does not collect sufficient revenue to deliver the change that Aotearoa requires. The Government should commit to increasing core Crown revenue from the historical average of 30% of GDP to around 35% of GDP over the next five years, including through stronger taxation of business, capital, carbon, and waste. This will enable the Government to meet the needs of a modern society.

Introduce a capital gains tax

Aotearoa’s tax system is out of balance, and this has been an important driver of rising wealth inequality. We propose the implementation of a comprehensive capital gains tax (excluding the family home) as a necessary step in bringing our tax system into line with international best practice. Māori customary and Māori freehold land should be excluded from this scheme. The revenue raised by the capital gains tax will be ringfenced for investment in preventative healthcare and public infrastructure.

Introduce a windfall tax and a banking sector levy

Some industries (such as grocery, banking, energy, and building materials) in Aotearoa can abuse their market power, contributing to our high cost of living. The Government should act to improve competition in industries such as supermarkets and banking by introducing a windfall tax mechanism on excess profits. In the banking sector it should introduce an annual levy on the large banks to ensure profits made in Aotearoa contribute to its development.