Tax reform delicate dance for coalition

The timeline to change New Zealand’s tax laws before the election may be softening, as the Labour branch of the coalition Government tries to align with a set of ‘‘non-negotiables’’ laid out by NZ First leader Winston Peters.

The Government is yet to establish its position on the recommendations of a tax working group, which called for a widesweeping capital gains tax.

The confidence and supply partner, the Green Party, wants the full gamut of recommendations implemented. But coalition partner NZ First is juggling a long-held position of opposition to a capital gains tax and is consulting its membership.

Peters has said very little on the matter but he has railed against any measures that would swell the accountancy profession or public service numbers at Inland Revenue.

In early 2018, Finance Minister Grant Robertson laid out a timeline that indicated tax changes would be legislated within this parliamentary term but no changes would take effect until after the 2020 election.

Peters has indicated he would not be bound by this timeline.

Prime Minister Jacinda Ardern told Stuff that was still the intended timeline ‘‘if legislation was required’’.

In practice, it was unlikely the Government would come to an agreement without some legislative changes. But Ardern’s comments were designed to provide a clear buffer around the Government’s effective position of ‘‘no position’’.

‘‘We’ve ruled nothing in or out – we’re leaving that for conversations with our confidence and supply partner and our coalition partner,’’ she said.

Ardern agreed with Peters’ statement that the intention was not to overly complicate the tax system or create an ‘‘accountants’ boom’’.

The Government was still officially working to an April deadline to produce a consensus approach, but NZ First was still taking time to ‘‘consult’’ its wider membership and the public.