ACT will cut taxes to get the economy moving again and Kiwis back into work. We'd temporarily cut GST to 10% and permanently cut the marginal tax rate paid by those on the median wage from 30% to 17.5%, simplifying the tax system to 3 rates.
ACT will cut taxes to get the economy moving again and Kiwis back into work. Tax cuts not only give earners more to spend and invest, they also make work and investment pay.
Temporary GST Cut
Permanent Income Tax Cut
Our proposed 5-point cut in GST would conclude in June 2021, while our income tax cut will be permanent. By cutting the 30% rate, we make the tax system flatter and fairer, with only three rates: On your first $14k, you would pay 10.5%. On your next $56k you would pay only 17.5%, while the rate on income above $70k would remain 33%.
You can view our full economic plan here.