Govt Unveils New Tax and Social Policy Work Programme to Strengthen Economy

“New Zealand has faced significant economic challenges over the last few years, impacting both businesses and households,” Watts noted.

The New Zealand government has announced a comprehensive Tax and Social Policy Work Programme aimed at revitalizing the economy and ensuring fiscal sustainability. Revenue Minister Simon Watts outlined the program’s core objective: to foster economic growth and streamline tax regulations, making it easier for businesses and households to thrive.

“New Zealand has faced significant economic challenges over the last few years, impacting both businesses and households,” Watts noted. “Our commitment to New Zealanders is to rebuild the economy and ease the cost of living—without imposing additional financial strain on hard-working citizens. We’re also committed to restoring the government’s finances to enable us to deliver better public services for all New Zealanders.”

The programme prioritizes a tax system that enhances economic resilience while providing the necessary revenue for government services. This initiative includes simplifying tax compliance, modernizing tax administration, and addressing tax integrity risks. By refining these areas, the government aims to ease burdens on businesses, support economic growth, and create a stable, investor-friendly environment.

The work programme includes six key workstreams:

Economic Growth and Productivity: Focused on removing tax obstacles that impede business expansion, including simplifying tax rules for non-resident contractors.

Integrity of the Tax System: Efforts to secure the tax system against compliance issues and promote fairness.

Modernizing the Tax System: Transitioning to digital tax solutions, which will simplify processes for both taxpayers and tax intermediaries.

Strengthening International Connections: Developing policies that make New Zealand attractive to overseas investors and skilled migrants.

Social Policy: Enhancements to social benefits like FamilyBoost, which helps with early childcare costs.

Other Agency Work: Coordinating tax policy initiatives with other government programs for comprehensive support.

Key priorities within these workstreams include easing tax obligations for small businesses, transitioning tax intermediaries to digital platforms, and considering the potential benefits of exempting the New Zealand Superannuation Fund from income tax to enhance retirement savings.

Additionally, the government is committed to enhancing FamilyBoost to provide more substantial support to families struggling with childcare costs. “We want New Zealand to be a place where businesses can grow, prosperity can flourish, international investments are encouraged, and talented individuals are drawn to work here,” said Minister Watts.

This Tax and Social Policy Work Programme is a cornerstone of the government’s long-term vision for a sustainable, competitive economy that meets the needs of New Zealanders.

More details on the Tax and Social Policy Work Programme for Inland Revenue can be found at taxpolicy.ird.govt.nz.