Tax report’s key recommendations

• Capital gains tax to apply after the sale of residential property, businesses, shares, all land and buildings except the family home, and intangibles such as intellectual property and goodwill.

• Tax rate to be set at the income-earner’s top tax rate, likely 33 per cent for most.

• Calculation of gains not to be retrospective — tax to be applied to gains made after April 2021.

• Art, boats, cars, bikes, jewellery, personal household items and the family home to be exempt.

• Losses on the sale of assets bought before April 2021 will generally be able to be used to reduce tax on gains from other assets.

• Increase the threshold of the lowest tax rate (10.5 per cent), allowing more income to be taxed at the lower rate.

• Increase social welfare net benefits to allow similar benefits as low-income earners, after tax threshold adjustments.

• House on farms and surrounding land up to 4500 sq metres exempt from CGT, calculated as a percentage of total farm value.

• CGT on small businesses can be deferred (rollover relief) if annual turnover is less than $5 million and sale proceeds are reinvested in similar asset class.

• No support to make company tax progressive, ie smaller companies paying less than 28 per cent.

• Capital gains tax estimated to raise $8.3 billion over five years.

• Expand coverage and rate of Waste Disposal Levy, expand the Emissions Trading Scheme and use congestion charging.

• Better tax benefits for KiwiSavers on low and middle incomes.