The Taxpayers’ Union welcomes the growing consensus around tax relief going into the next election, but warns that parties must also clearly set out what savings they will make to avoid increasing debt further.

At the weekend, New Zealand First announced support for three-yearly income tax indexation—a policy already backed by National —and went further saying brackets should be adjusted back to 2011 levels.

ACT has previously said that ‘Tax bracket indexation is a good start’ but would prefer wider tax cuts and reform.

Taxpayers’ Union Campaigns Manager, Callum Purves, says: “When people are really struggling with the cost of living, rather than cycle money around with high taxes and Government handouts, the solution is obvious: The Government should stop taking so much of people’s money in the first place.”

“It is great to see common sense finally prevailing with more parties seeking to lower the tax burden. But the lesson from UK Prime Minister Liz Truss is that it is simply not credible to promise tax relief without focusing on the real problem: The dramatic growth in wasteful government spending and bureaucracy.

“Everyone understood the need for growth during the pandemic, but now is the time to get Government back down to pre-lockdown levels. National have suggested that they will have a ‘very efficient public service’, but make no specific commitments on how they will achieve this.

“Political parties must always level with New Zealanders about how they are going to pay for their policies.”

© Scoop Media