The 2020 election is different to any previous election in New Zealand—given the economic implications of the coronavirus (COVID-19) pandemic in New Zealand and across the globe.
One forecast is for a decade of deficits and a “sea of red ink”—a far cry from the economic situation three years ago. It is against this background that the two major political parties have had to plan their economic and tax policy responses.
The Labour Party has opted for a “steady as she goes” approach to tax, in favour of direct government stimulus for the economy. A higher top individual (personal) tax rate would be the only signalled change if it is re-elected. Other tax increases and new taxes have been ruled out in the next term.
The National Party has promised tax reductions—temporary threshold increases for individuals to deliver personal tax cuts and increased write-offs for business assets—as part of its broader stimulus package.
The other parties’ polices reflect their specific focus areas and constituencies.
Read a September 2020 report prepared by the KPMG member firm in New Zealand
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