6 May 2010

Labour looking at GST changes, compulsory KiwiSaver

1:31 pm on 6 May 2010

The Labour Party says it will undertake a major review of the GST if it wins the next election, as it rethinks a number of policies.

The Government has signalled it will raise GST from 12.5% to 15% in the Budget on 20 May.

The Labour Party says it has always favoured a low rate but broad based GST, however finance spokesperson David Cunliffe says the Government looks like it's trying to wreck that by raising the rate.

He says Labour is considering knocking back any rise if it wins the next election or exempting food from the tax.

Mr Cunliffe says Labour is also considering whether the savings scheme, KiwiSaver, should be made compulsory, since in Australia compulsory superannuation has helped fuel economic growth, productivity and higher wages.

He says his party is also considering a range of other options to increase savings, from tax incentives to new low-risk saving products, and will come up with suggestions before the next election.

David Cunliffe told Morning Report the Labour Party is also looking at the issue of overseas ownership of farms.