The Government’s tax policy work programme (TPWP) sets out our policy focus. The work areas are:
- Taxation of residential investment property. This work will include making changes to our tax settings to improve housing affordability for first home buyers by dampening investor demand for existing property.
- Tax administration. This work will focus on leveraging the assets and capabilities developed through our business transformation programme and will include a green paper on options for tax administration reform.
- Sustainable economy and the environment. We will work with other agencies to develop a framework for when to use taxes or other charges for environmental and resource issues, review existing tax provisions to ensure they are not biased against environmentally friendly investment and behaviour, and contribute to cross-agency advice on environmental proposals.
- International tax. The international tax framework needs to adapt to shifts in the global economy, including increased cross-border activity and digitalisation. This work will include a multilateral solution to the challenges posed by the digital economy to international taxation and consideration of a digital service tax.
- Integrity of the tax system. This work will include measures to support the 39% top personal income tax rate, the collection of information about trusts, and a new Tax Principles Act (which will involve the establishment of a reporting framework against a set of principles to measure fairness of the tax system).
- COVID-19 response. We will work with other agencies to make any changes required to the range of COVID-19 response measures.
- Stewardship. This work will include a review of fringe benefit tax to determine if it’s fit for purpose, a long-term insights briefing, and research work involving the collection of information on the level of tax paid by high wealth individuals.
- Maintaining the tax system. Tax legislation needs to be regularly maintained and updated in response to changing technology, business practices, jurisprudence, or other factors. Our remedial work programme will focus on priorities in this area.
- Non-discretionary other agency work. This work involves other agencies’ work programmes that have tax implications or delivery implications for us. Examples of this work include local government reforms, the Three Waters project, and charities review.
- Social policy. We have a significant role to play in the delivery of social policy. This work includes the Ministry of Social Development led welfare reform programme (which includes a review of Working for Families), and the development of a social unemployment insurance scheme.