Greens try to set agenda on pre-Budget tax debate
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Analysis:Tax is an evergreen topic when Budget Day approaches.
Sometimes, as with last year, the discussion centres on bold tax plans promised by the Government. For other years (think 2023 and the rumours of a wealth tax), there’s speculation about big surprises in the Budget documents.
As we near Budget 2025, tax is on the agenda again, but for once it isn’t the Government’s potential tax plans that have everyone talking.
Instead, the Greens’ alternative Budget, released last week, has sparked a flurry of fundraising emails in support and opposition – as well as a studious refusal to comment from Labour.
The headlines garnered by the Green Budget have focused as much on the promised new taxes as on what they would fund. The wealth tax (on assets over $2 million, bringing in more than $18 billion a year) makes up the bulk of the $22 billion a year in new taxes in the proposal. Other big changes are higher corporate taxes ($2.3b a year) and a $3b annual boost to ACC levies to fund a significantly increased scope for the entity.
The focus on the proposed private jet tax ($25 million a year) and doubling of mining royalties (to $11 million a year) has been far greater than their actual contribution to the Greens’ proposed Budget.
Meanwhile, the party’s mooted tweak to income tax brackets has received less attention. It would see the Government bring in $740mless in income tax a year, through creating a tax-free threshold. Although tax rates would be raised on high-earners, anyone earning less than $122,000 a year would pay less in income tax than they currently do.
Labour leader Chris Hipkins demurred when asked about his view on the Green proposal.
“I have just seen the headlines. I haven’t actually had a chance to look at it. If you have questions on that, best direct them to the Greens,” he said last week. “We will set out our alternative fiscal plan prior to the election. I think it is a bit too early to do that for us yet as there are two government Budgets to go before then.”
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