New Zealanders face an increasingly insecure economy due to rising costs of living, an ever-changing labour market, new technology and a broken welfare system that fails to treat people with dignity.
Phase 2 of our fair tax policy will provide income security for everyone, acknowledge unpaid labour, like childcare, and empower Kiwis to invest in themselves.
To achieve this, we will introduce a Universal Basic Income (UBI).
Universal Basic Income:
- Introduce a $16,500 annual tax-free income to all citizens and residents aged between 18 and 65 years, paid weekly. There won’t be any changes to superannuation.
A UBI will enable people to take time out to invest in themselves (e.g. study or retrain). And, it will free many Kiwis from the welfare trap where they are subject to an undignified, punitive and expensive welfare system. Those on welfare transfers larger than the UBI will be topped up to the original.
The introduction of a Universal Basic Income will grow New Zealand's economy, and it is estimated to be fiscally neutral (within 1% of GDP).
Alongside our plan to introduce a Universal Basic Income, we will also introduce several targeted reforms to create a highly progressive tax system:
- Remove tax loopholes and simplify the tax system with a single income tax rate of 35% (for personal, company and trust income).
- Increase the annual land value tax on residential land (established in Phase 1) to 1.25%.