New Zealand: Tax policies of major political parties in 2020 election

New Zealand: Tax policies of major political parties

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.


Related content

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

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal