A capital gains tax on everything from baches and KiwiSaver funds to direct investments in stocks and bonds will not only punish New Zealanders who have worked hard but could also drive our firms across the Tasman, National’s Finance spokesperson Amy Adams says.
“National opposes any further cash grabs from this Government via new taxes but the warning about the risks a CGT poses to New Zealand businesses and capital markets comes from market participants and the stock market itself.
“Hopefully the Tax Working Group will heed the concerns of the stock market operator NZX and the Securities Industry Association that New Zealand businesses need access to strong capital markets to grow.
“If not, they’ll move somewhere more favourable like Australia, taking jobs and investment with them. We don’t want the recent migration outflow to Australia to turn from a trickle to a torrent.
“Businesses are already feeling gloomy about a move to less flexible and invasive employment law and they are unsettled by the Government’s ban on new offshore oil and gas exploration, a move that didn’t have the backing of officials or industry leaders.
“The implications of a CGT aren’t just a concern for the big end of town. Every community is hurt when factories and other workplaces relocate offshore or close, with the loss of jobs that support families up and down the country.
“The Labour-led Government is doing things that will make our economy weaker over coming years and New Zealand families are the ones that will be worse off as a result.”