The Green Party has released a major tax policy that would introduce new taxes on wealth, inheritances, large corporations and banks, while reducing income tax for most New Zealanders.

Under the proposal, the first $10,000 of income would be tax free, which the party says would deliver a tax cut to 96 percent of New Zealanders. A new top tax rate of 45 percent would apply to income over $160,000.  

The Greens also want to introduce a 2.5 percent annual tax on net assets above $10 million, excluding the family home. The party says the tax would apply to about 0.3 percent of New Zealanders.  

Another key proposal is a 33 percent tax on inheritances and gifts worth more than $1 million. Family homes and family farms would be exempt. The tax would be paid by the person receiving the inheritance or gift.  

The party is also proposing higher taxes on large companies. Businesses with annual turnover above $30 million would see their corporate tax rate rise from 28 percent to 33 percent, while smaller businesses would remain on the current 28 percent rate. The Greens say the change would affect about 0.7 percent of businesses.
The policy includes a new levy on the country’s largest banks. A 0.06 percent annual levy would apply to banks with more than $100 billion in liabilities, including ANZ, ASB, BNZ and Westpac.

The Greens also want multinational technology companies such as Google, Facebook, Amazon and Microsoft to pay a five percent withholding tax on profits sent offshore.  

Property investors would also be affected. The party plans to remove interest deductibility for residential rental properties and restore the bright line test to 10 years, reversing changes introduced by the current Government. The family home would remain exempt.  

According to the policy document, a person earning $40,000 a year would be about $27 a week better off, while someone earning $90,000 would gain about $10 a week. Those earning more than $160,000 would begin paying more tax, with someone on $200,000 a year paying about $66 more a week.  

Green Party co leaders Marama Davidson and Chlöe Swarbrick said the policy would ensure wealthy individuals and large corporations contribute more to funding public services and reducing inequality.  

The party estimates its proposed wealth tax would raise about $3.8 billion annually, while the inheritance tax would raise about $1 billion a year.