The Prime Minister has just confirmed that he will lay out some details of changes to the tax system when he makes a speech tomorrow at the opening of Parliament.
The Government has made taxation a key issue in its first term – forming the tax working committee and the 2025 Task Force's report on matching Australia's economic performance – and our tax system figured prominently in both reports.
Meanwhile, the Government's property valuation service QV says the real estate market in January was driven by existing home and first home buyers – with those looking for investment properties absent because of uncertainties about the tax direction.
John Key told Marcus Lush people will know more tomorrow.
"People won't be away having to guess too much, I think they'll be able to work out where the government's going."
Mr Key said he can't necessarily rule out the introduction of a capital gains tax or land tax.
The Tax Working Group last month released its recommendations to revamp the tax system which it says is broken and needs comprehensive reform. It proposed reducing personal tax, increasing GST from 12.5 percent to 15 percent, a method of taxing capital gains on residential rental properties and a low-rate land tax. It said the company, top personal and trust tax rates should be aligned to improve the integrity of the tax system.
RadioLIVE/NZPA