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.
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.”
ENDS
For more information contact Alliance Party Finance and Economy Spokesperson Quentin Findlay on Mobile 021 326 443
The Alliance
