Kiwi Party policy

The Kiwi Party (the new name for the former Future Party, which broke away from United Future after the anti-smacking bill with Gordon Copeland and Larry Baldock, has unveiled its tax policy (the first party this election, to the best of my knowledge to do so). Here are the key elements of it:

Income splitting for families with dependent children. This policy would allow a family with a father earning $76 000 per year, and stay at home mum raising children, to have the income split equally. This means instead of being taxed at 19.5% on the first $38 000 of income, the next $22 000 is taxed at 33% and the last $16 000 is taxed at 39% (total tax paid is $20 910), they will be able to have their income split in two, at $38 000 each, meaning it will all be taxed at 19.5%, reducing the total tax paid to $14 820. This is quite nice policy that will help families.

$100 of income tax goes to a charity of your choice. Nice aid to charity, but it should be up to you, not the government to decide how you spend your money. Should spend the money cutting taxes elsewhere and give new Zealanders the choice of whether or not to give it to charity.

Adjust tax thresholds for inflation. It promises to backdate this policy to 2002 by increasing the 19.5%/33% threshold from $38 000 to $46 000, and raising the 33%/39% threshold from $60 000 to $73 000. Good move.

Artificially increase wages by increasing the minimum wage to $15 per hour. Oppose. The minimum wage was $9.50 pre 2005, and as part of Labours coalition confidence and supply agreement with NZ First it was raised to $12 per hour, a high level. Although the wage increase is tax deductible, Peter McCaffrey has a good deal to say about how it might actually stop further wage increases.

Health insurance premiums to be tax deductable. Good move. Ease pressure on the state health system, encourage health insurance and reduce taxes.

GST off rates (about time) and a proportion of GST to go to local government. This will reduce the ever increasing rates bills many New Zealanders face. Good policy.

Overall sensible policy, though the increase in thresholds to $73 000 and $46 000 is too timid with bigger cuts needed, and I have strong reservations about the minimum wage part. Sadly, as the Kiwi Party is not registering in the polls, and will struggle to get 0.5%, yet alone 5%, these policies won’t be implemented. Hopefully might give National some ideas.

Explore posts in the same categories: Gordon Copeland, Tax cuts

2 Comments on “Kiwi Party policy”

  1. James Read Says:

    The idea of health insurance premiums being tax deductable is appealing. However, this will not be enough to make me change my voting plan, as the same offer is available from Act, who are virtually certain to have an electorate seat in the next parliament.

  2. Al Says:

    A party pushing democratic vote counting and referendums has to be good – if we don’t have that why bother voting at all? I think Larry Baldock stands a good chance to get into Tauranga now that Winston was sold to Labour for the last three years and his party don’t want him and Bob wants to get back on the building site. Good to see Kiwis getting into it.

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