UNIVERSAL BASIC INCOME
New Zealanders are facing increasingly insecure circumstances due to rising costs of living and an ever-changing labour market. We also have a broken welfare system that fails to treat people with dignity, fuelling social problems like mental health issues, generational poverty, and reduced social cohesion.
Our vision:
Phase 2 of our higher incomes package will see the introduction of a Universal Basic Income (UBI), established at the prevailing Jobseeker Support rate.
A Universal Basic Income will:
- Provide income security for everyone.
- Reduce government interference in people’s lives, allowing them to spend their money in the ways that are best for them and their families.
- Acknowledge unpaid labour, such as childcare.
- Provide a safety net for people, empowering them to take on new opportunities and pursue their passions.
We will:
- Introduce a $16,500 annual tax-free income to all citizens and residents aged between 18 and 65 years (no changes to superannuation).
- Establish a $2,340 annual tax-free child basic income (paid to parents up to the age of 18).
- Remove tax loopholes and simplify the tax system with a single income tax rate of 35%, which will include company and trust income.
- Increase the annual land value tax on residential land (established in Phase 1) to 1.25%.
The introduction of a Universal Basic Income is likely to grow New Zealand's economy, and it is estimated to be fiscally neutral (within 1% of GDP).
