27 Apr 2023

Revenue Minister on report that found richest paying half as much tax as average New Zealander

From Morning Report, 7:10 am on 27 April 2023

A capital gains tax could be back on the political agenda following a report showing the country's richest families pay about half as much tax on their income as an average New Zealander.

The IRD investigation looked at effective tax rates paid across full income and assets - including capital gains, property and businesses, trusts and shares - rather than salaries or wages alone.

It showed the median effective tax rate for people worth more than $50 million is just 9.4 percent compared to more than 20 percent for middle wealth New Zealanders.

While former Prime Minister Jacinda Ardern categorically ruled out introducing a comprehensive capital gains tax, her successor Chris Hipkins hasn't ruled it out next term if Labour is re-elected.

Corin Dann spoke to Revenue Minister David Parker about his views on the findings of the IRD investigation..