Te Pāti Māori launches new tax policy, says most would pay less

Te Pāti Māori has unveiled a tax plan that would mean the wealthiest 3% of people pay more tax while the rest – “almost everyone” – would have the first $30,000 of their income tax-free.

Dubbed the "Kiwi Tax Plan", the party said it was about fairness.

“This isn't about Māori versus non-Māori, or workers versus business. It's about building an economy that works for the overwhelming majority of people who call Aotearoa home,” said Te Pāti Māori co-leader Rawiri Waititi.

As part of the plan, an estimated 4.2 million people would additionally receive around $4000 a year.

People earning $60,000 or less would receive a targeted tax credit on kai, equivalent to eight weeks’ worth each year.

A targeted wealth tax would place a 1.5% tax on net assets worth $2,000,001 to $5,000,000, 2.0% on $5,000,001 to $10,000,000, and 2.5% over $10,000,000.

“This is a policy for everyone. Whether you are a cleaner, a nurse, a teacher, a tradie, a pensioner or raising a whānau, we want you to keep more of what you earn,” said Waititi.

Co-leader Debbie Ngarewa-Packer added: “People across Aotearoa are feeling the squeeze. The kai bill is up. Housing costs are up. Power is up. Everything is taking a bigger bite out of the household budget.

“Our answer is simple: put pūtea back in people’s pockets and give Aotearoa some room to breathe.”

Over the weekend, National leader Christopher Luxon ruled out both an accommodation levy and a bank tax as part of a stern "no new taxes" pledge.

"This is about no new taxes, and I can't be clearer," Luxon said.

"Tax is a defining theme for this election, and the choice for Kiwis is clear. It's either a National government promising no new taxes, or a Labour and its prospective coalition proposing at least nine new taxes."

Labour, meanwhile, has proposed a 28% capital gains tax on commercial and residential property — excluding the family home, farms, KiwiSaver and share..

The tax would take effect from July 1, 2027 and was expected to raise around $700 million a year over the forecast period.

The Greens have proposed a 2.5% tax on net assets above $10 million, a revived inheritance tax of 33% on inheritances worth over $1 million, and a new $10,000 tax-free threshold the party says would cut tax for 96% of New Zealanders.

Co-leader Chlöe Swarbrick said the changes were justified by a "cost of greed crisis".

ACT leader David Seymour has pledged the party will reveal a fiscal plan showing a faster return to surplus "without imposing any new taxes".

"When politicians say they'll only tax someone else, remember that taxes affect both buyers and sellers," Seymour said.