Frank Newman: A Budget of Low Expectations

The Budget has sent us yet another reminder that New Zealand has become a miserably dependent and introverted society.

It’s a sad state of affairs when reducing prescription costs by $5 is heralded as a great initiative and roundly applauded as a policy of significance by those in charge of the taxpayers’ wallet.

Let’s face it, a government giving back a few dollars that the government has taken from someone, is not going to be a life-changing event. It’s not going to make people who are currently dependent on the state less dependent – and it’s certainly not going to make them more aspirational about the future. Nowhere in the budget was there any hint of transitioning people from welfare to work.

Frank Newman: Ring-fencing

Inland Revenue has released an "issues paper" on ring-fencing losses. Revenue Minister Stuart Nash says the policy is an effort to "level the playing field" between speculators and investors. Feedback is being encouraged. Submissions must be in by 11 May 2018.

The policy paper says, "The proposed loss ring-fencing rules will mean that speculators and investors with residential properties will no longer be able to offset tax losses from those properties against their other income (for example, salary or wages, or business income), to reduce their tax liability.  The losses can be used in future years, when the properties are making profits, or if the person is taxed on the sale of land."

Frank Newman: The Future of prosperity

I recently outlined some of the proposals included in the Future of Tax, a background discussion paper to encourage submissions about how tax should be collected in the future.

I made the point that the review is not comprehensive, nor is it impartial. 

The discussion excludes areas that the government considers politically unacceptable, like a capital gains on the family home. It promotes possible tax breaks for those involved in the Maori economy. It plans to use the tax system to address environmental issues like global warming and biodiversity. And it sees the tax system as the way to address house affordability issues.

NZCPR Weekly: Election 2017 - Style versus Substance

Dear NZCPR Reader,   

This week, in our final Election 2017 update, we look into the ‘hot’ election topic of tax and investigate some of the promises that have been made by Labour, our NZCPR Guest Commentator Anthony Willy explains why the Labour Party’s plan to disclose the details of tax policies after the election is so dishonest, and this week’s poll asks whether you agree with Labour that New Zealand needs more taxes? 

All of our NZCPR Election 2017 updates can be viewed on our NZCPR.com homepage.

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Frank Newman: Labour's Tax Plan - clarified!

Jacinda Ardern has clarified Labour's tax policy: 

"Now let me be absolutely clear about this so there is no doubt. 

"Our tax plan is the plan we had before we had the most recent plan. 

"It's fair that everyone pays their fair share unless we believe it's not fair, in which case we will be fair and reasonable.  

"This is not a reversal or back down - it's my Captain's call.  

"People are telling us they want this clarity, and we are listening to their call. 

"It has nothing to do with our slide in the polls."