'Broader range of taxes' will be necessary in the future - Tax working group member

News 17/04/2019

Tax working group member Geof Nightingale joins Brendan Telfer in conversation on Magic talk Drive regarding the Governments announcement Wednesday afternoon that they would not pursue a capital gains tax any further.

When asked if he was disappointed by the Government announcement Geof told Magic Drive "I think some of the issues that we idenitified will continue into the future. As more of us age and moving forward in time we are going to have a look at a way to broaden our tax base."

Brendan wanted to know if he would call it a mistake on the Government's part to drop the capital gains tax.

It's a completely acceptable response to continue as we have been.

Magic Drive host Telfer wondered if perhaps a softer proposal might have made it easier for coalition partners New Zealand First to back the tax, although Geof said he would leave that to the politicians to argue the politics. 

One of the difficulties in creating a fair capital gains tax system, Geof said, was the restrictions to exclude the family home passed down from government. 

"I think the problem with the working tax group to exclude the family home created an unfairness that doesn't need to exist. The family home exclusion created a new source of unfairness. It complicated things for us in designing a solution to combat that unfairness."

Watch the full interview above.