The Alliance Party has unveiled its tax package,
proposing to make the first $20,000 of every person’s
income completely tax-free. Under the proposed scale, an
everyday worker earning $65,000 would keep an extra $2,408 a
year.
The package combines taxes on wealth, realised
capital gains, and financial transactions with a 30%
corporate tax rate and a rebalanced income tax scale. The
Alliance’s costings estimate a net revenue surplus in both
the first term and at year 10.
$20,000
Tax-Free Threshold: Universal, automatic, and
permanent relief. All earners below the $178,150 break-even
point pay less income tax. Proposed upper rates are 34% from
$78,100 to $150,000; 39% from $150,000 to $250,000; and 47%
above $250,000.
2.5% Wealth Tax: An
annual tax on individual net wealth above $2 million,
estimated to raise $6.59 billion annually. A couple pays
nothing on combined net wealth up to $4 million. A companion
trust tax is estimated to raise a further $0.11
billion.
33% Capital Gains Tax:
Applies to realised gains accruing after the tax begins,
fully excluding the family home. Estimated annual revenue
rises from a first-term average of $0.54 billion to $2.22
billion at year 10.
Financial Transactions
Levy: A 0.1% levy covering equity and onshore
foreign exchange turnover, estimated to raise $0.64 billion
annually. Everyday household payments, wages, bills, and
KiwiSaver contributions are strictly exempt.
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Alliance
Finance and Economy Spokesperson Quentin Findlay says the
central focus of the policy is taxing wealth, not
work.
“Aotearoa New Zealand currently taxes income
from the very first dollar earned, while untaxed wealth
multiplies without effort.
“The Alliance is offering
a completely different set of priorities to provide working
people and their families with security in a cost-of-living
crisis.
“By shifting the tax burden onto those who
already hold extensive wealth, an essential worker on
$65,000 keeps an extra $2,408 every year. This is about
ensuring our economy serves the people who actually do the
work.”
