The key motivation for New Zealand’s Labour-led government in establishing the Tax Working Group was to investigate a fairer tax system. For reasons of simplicity, the TWG proposes broad exclusions from a capital gains tax, including a taxpayer’s primary home and all personal assets such as collectables and artworks.

This paper looks at the evolution of capital gains tax (CGT) to this point, including how past reforms were justified. It then examines whether discounting capital gains or indexing for inflation — or indeed, a combination of the two — is the better model. The paper then considers the principles underlying CGT, and whether they...

This analysis argues that a small minority of individuals are spending big on tax accountants to take advantage of unfair tax loopholes, such that individuals with a gross income over $1 million can pay zero tax.

Concerns about the structure, fairness and balance of the New Zealand tax system have led to the Tax Working Group recommending the government tax more income from capital gains.

This paper discusses the history of cash refunds of excess franking credits, and the impact abolition would have on taxpayers, markets and revenue.