The introduction of a capital gains tax is supported by a clear majority of the Tax Working Group, says its chairman Sir Michael Cullen.
He revealed today that the 10-member group has reached a consensus on introducing a capital gains tax and plans to publish its final report by the end of January, a month ahead of schedule, Stuff reports.
Speaking at an event hosted by Victoria University in Wellington, Sir Michael said the objections among the minority who had not backed the working group's plan were "mainly about some aspects of how you do it, rather than whether you do it".
But he reportedly indicated there could be water to go under the bridge before any changes were adopted and enacted by the Government.
He also said it was "last chance saloon" for a capital gains tax, saying "there is no point trying to do it in 20 or 30 years' time" because "there will be an older electorate that is even less likely to support changes in capital income taxation".
National’s Finance spokeswoman Amy Adams says Sir Michael Cullen "has clearly worked hard to convince a majority of group members to support the proposed new tax".
"The Government already takes about $50,000 a year in tax from the average New Zealand household and has worked quickly to increase that burden with more taxes on everything from fuel to residential property," Ms Adams said in a statement.
A Capital Gains Tax will see New Zealanders pay more tax on their small businesses, baches and investments and are known to be very difficult and expensive to apply, she said.
"Sir Michael’s revelation that the CGT has the greenlight from his group and is ready to be reported back to the Government in February is welcome for its honesty but not for the impact it will have on the complexity of the tax system and New Zealanders living costs such as rent," Ms Adams said.
"The Government has already signalled its appetite for the new tax, one of many poorly conceived policies that are driving up rents including extending the bright-line test, ring fencing of losses, more burdensome regulations and the ban on foreign investment."
National is committed to repealing any capital gains tax brought in by the Government, Ms Adams said.
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