The Tax Working Group has been brought together by the New Zealand Government to consider the future of tax. Chaired by former Finance Minister Hon Sir Michael Cullen, it will provide recommendations that would improve the fairness, balance and structure of the tax system over the next 10 years.

It needs input from a diverse and wide range of New Zealanders to help it reach its conclusions and is running a two month public consultation between 1 March and 30 April 2018. In September 2018 the Group will release an interim report before issuing their final recommendations in February 2019.

The Tax Working Group has identified eight broad challenges, risks, and opportunities that will affect the tax system over the coming decade and beyond:

  • changing demographics, particularly the aging population and the fiscal pressures that will bring;
  • te ao Māori and the role of the Māori economy in lifting New Zealand’s overall living standards;
  • the changing nature of work;
  • technological change and the different business models that will bring;
  • falling company tax rates around the world;
  • environmental challenges, including climate change and loss of ecosystem services and species;
  • growing concern about inequality; and
  • the impacts of globalisation and changes in its patterns.

The tax system will need to be sufficiently robust to deal with these challenges, and sufficiently nimble to take advantage of the opportunities. There will also be other shocks and surprises that policymakers have not considered and cannot foresee.

The Group would therefore like to hear New Zealanders’ views on how these challenges and opportunities might affect the tax system, and, equally importantly, whether there are any other key issues for which policymakers will need to prepare.

Submissions should be made by 30 April 2018 and can be emailed to [email protected] or submitted online at https://taxworkinggroup.govt.nz

Sources: Press release | Summary for submitters | Background paper

 

From the blog:
NZ Government Establishes Working Group to Review the Tax System

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