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Articles by Anthony Strevens.

Politics and Tax

AUTHOR: Anthony Strevens
Partner

POSTED: 19 December 2022

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With all the changes in tax law in recent years, there has been plenty of speculation about what a change in government might mean for the tax landscape.

Whilst the National Party has not released their final tax policy ahead of next year’s election, on their website there are some clear indications of what they would do should they be elected.

Amongst other tax reversals on things like fuel and infrastructure, the National Party website says they will reverse:

The 10-year bright-line extension. However, it’s not clear if they would simply reduce this back to five years or whether they might even take it back to the two-year term (which is where it began when the National Government first enacted this rule).
Interest deductibility on rental properties. With interest rates going through the roof, this would have a massive impact for rental property owners.
The 39% top tax rate. Interestingly, they also propose new tax brackets whereby the current tax rate bands are shifted to take into account inflation. However, although they have said they would reverse it, their proposal still includes the 39% rate on income over $180,000, so there is some inconsistency there.

Of course for any of this to matter, there would have to be a centre right government voted in next year in the general election. Current polling seems to indicate there is a reasonable chance of this happening.

So whilst we may not be getting any tax cuts for Christmas this year, there may yet be something under the tree come 12 months’ time.

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

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