National has called it "economic lunacy". ACT compared it to the Hunger Games. But the Greens say their tax policy will "rebuild our country".
The Greens have proposed a flurry of new taxes and changes to existing ones ahead of the election, including a tax on net assets for the ultra-wealthy, an inheritance tax, and increased corporate taxes.
It claims they would address inequality and cut taxes for 96% of New Zealanders.
So what's actually being proposed? And who will have to pay?
How will it affect my income?
The Greens claim its policy would give 96% of Kiwis an income tax cut.
The party wants to change income tax thresholds – dropping them for those making between $10,000 and $160,000 a year. It also promises to make the first $10,000 earned tax-free.
Those making over $160,000 would be taxed at 45%.
According to the Greens' modelling, those making $10,000 would be $20 better off per week; those on $40,000 would see $27 more per week; those on $70,000 would see $11 more per week; those on $90,000 would see $10 more per week; and people making $150,000 would be better off by $4.
Those making $170,000 would be worse off by $20; people on $200,000 would have $66 less in their weekly pay; and those on $300,000 would be $181 worse than under current settings.
What are their plans for the wealthy?
The party says it will introduce a 2.5% tax on net assets above $10 million.
The tax would apply to things like properties, companies, and shares – not income from wages and work. Family homes would also be exempt.
"Super high value" assets like art worth more than $50,000 would be valued and included based on their insured value.
Wealth held in trusts would be "apportioned" to an individual's taxable wealth, based on their interest in the trust.
Swarbrick spoke to Q+A about the Greens' policy to pause new AI data centres consents for a year. (Source: Q and A)
For discretionary trusts, the settlor, the one who puts assets in, would still be treated as owning the trust and may potentially have to pay tax. For fixed interest, tax would be calculated based on each beneficiary's share.
Māori land under the Te Ture Whenua Māori Act would be exempt, as well as the assets of Post-Settlement Governance Entities – like land returned under a Treaty Settlement or vested in a Treaty Settlement Entity.
Assets owned by non-government organisations, clubs, and charities would also be outside the tax's scope.
The party claims this policy could generate $3.7 billion in revenue by 2027, $3.9 billion by 2028, $4 billion by 2029, and $4.1 billion by 2030.
What about the inheritance tax?
The Greens want to introduce a 33% tax on inheritance and gifts valued above $1 million.
Family farms and homes, as well as small gifts, would be exempt.
Under the policy, the recipient would pay the tax, not the estate or the person passing it on. The Greens say it would apply to 1100 people a year.
"This would mean someone gifted a family home worth $1.5 million and $250,000 in shares, for example, would be exempt from the tax, as the family home is exempted and the remaining inheritance is under the $1 million threshold," the party's tax policy document reads.
The party wants to add a new higher tax rate on income made over $160,000. (Source: 1News)
"If someone was gifted a family home worth $1.5 million and a further $1.25 million in shares and bonds, they would pay a 33% tax on $250,000 – the value over $1 million excluding the family home."
Māori land under the Te Ture Whenua Māori Act and the assets of Post-Settlement Governance Entities would be exempt.
The Greens say this policy would generate $953 million in revenue in 2027, $1 billion in 2028 and 2029, and $1.1 billion in 2030.
Banks, supermarkets, energy companies, big tech and landlords
The Greens have pledged to raise the corporate tax rate from 28% to 33% for companies with an annual turnover above $30 million. The party claims the tax would impact 0.7% of businesses, with banks, supermarkets and energy companies paying it.
The Greens would also require big tech corporations like Google, Facebook, Amazon and Microsoft to pay the 5% withholding tax rate on profits sent offshore. It would also apply to companies like Netflix and credit card companies that use a "service company model", where a local subsidiary operates as a marketing and support service to an overseas company, booking sales offshore.
For landlords, interest deductibility would be removed for residential property investment and the bright-line test period would be returned to 10 years. This means income tax would be payable on gains from selling residential investment property if sold within 10 years of purchase. It would not apply to family homes.
What are the other parties saying?
National has slammed the Greens' tax plans, with leader Christopher Luxon saying it would be a "wrecking ball" to the economy – arguing it would push wealth out of the country.
"If you seriously think that wealth creators and wealth generators in this country are going to hang around in New Zealand on the back of that policy, that's quite something."
ACT Leader David Seymour branded it a "Hunger Games" vision that appealed to "tall poppy syndrome".
"Instead of creating the condition for even more wealth, the Green vision is taking from those who've succeeded already.
"It is a tax policy written by the dark underbelly of our culture, tall poppy syndrome."
He had particular scorn for the Inheritance tax, saying: "Not even death is sacred under the Greens' plan."
Labour Leader Chris Hipkins said his party would not adopt the tax policies laid out by its potential coalition partner, and would stick with its proposed 28% capital gains tax.
He said about the Greens' wealth tax: “There are some real potential issues around that, around people just moving their money to where they don’t end up paying that tax.”
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