Tax Reform – Rebalancing our tax system to deliver for ordinary New Zealanders

Source: Tax Justice Aotearoa (TJA)

15 April 2026 – Tax Justice Aotearoa (TJA) has today released its Tax Policy Statement setting out a mix of proposals that together could rebalance our tax system so that it delivers for ordinary New Zealanders.

“Our policy statement shows that a tax system that works for everyone in Aotearoa New Zealand is possible,” says TJA spokesperson, Glenn Barclay.

“It is not a policy prescription, but sets a clear direction. We’re keen to have the conversation with Aotearoa about how we gather the revenue we need to address the challenges we face – like increasing inequality and an ageing population; and gather that revenue more fairly – ensuring that those who have most to contribute make that contribution and addressing the impact of tax on the least well off.”

“But as successive polls have shown, there is solid support for tax reform and properly funding our public services, New Zealanders realise maintaining the status quo is not an option,” says Barclay.

“NZ is a low tax country compared to many other developed nations, and we’re not gathering enough revenue to fund the things that matter for us to live good lives, like fully staffed hospitals and affordable housing, resilient infrastructure and nutritious school lunches.”

“We rely very heavily on income tax and GST, so working people are carrying more of the load of funding our public services. And our failure to properly tax wealth and big corporates directly contributes to increasing inequality, erodes living standards and opportunities for ordinary people, like working towards owning your own home,” says Barclay.

“As we confront yet another crisis, TJA is calling on the Government, and all political parties, to catch up with public sentiment, and to stop offering bandaids like tax cuts. It’s time to embrace real solutions that will ensure we’re gathering enough revenue to fund the things that matter, gathering it more fairly, and laying the foundation for a recovery that supports everyone in Aotearoa to have a better future,” says Barclay.

TJA’s Tax Policy Statement sets out practical changes we can make to our tax system to catch-up with other developed countries’ investment in public goods, services and infrastructure, to tackle inequality and to support a more productive and resilient economy. The proposed changes would close the gaps in tax on big corporates and ensure the wealthiest are paying their fair share, and include:

Tax surcharge on big corporates, for example a levy on major banks (as in the UK and Australia), a surcharge on sectors managing vital infrastructure or where there is a lack of competition, like supermarkets and gentailers.
Excess/windfall profits taxes, for example, on big corporates to discourage price gouging and excessive profits arising from the current fossil fuel crisis.
Taxing Big Tech and other multinationals by enforcing existing tax obligations and changing the law to require these corporate giants to be more transparent about the profits they’re making, like the Public Country-by-Country Reporting adopted in Australia.
Close the shareholder loans tax loophole, to prevent tax avoidance and reduce financial risk to small and medium size businesses (e.g. using the UK model).
Tax wealth more, not work, through a comprehensive capital gains tax (as in most OECD countries), high-wealth tax, trusts tax, and wealth transfer tax (as in Ireland).
Adjust income tax settings to better reflect ability to pay, by introducing a tax free band, making tax bands more progressive and raising the tax rate on the highest income earners. Most workers would pay less or the same tax under this proposal.
Addressing the impact of GST on the least well off, by reducing the rate of GST or introducing rebate system for people on low incomes (like in Canada).

Other important areas for reform in the TPS include: health, environmental and other remedial taxes; international taxation; transparency and administration of the tax system.

The full policy statement can be accessed here: https://assets.nationbuilder.com/tja/pages/3281/attachments/original/1776134165/TJA_Tax_Policy_Statement.pdf?1776134165