wealth tax

PHOTO: NZ Wealth Tax

The Government has once again said it is not considering a wealth, death, or inheritance tax – despite speculation from Opposition parties it is “preparing” for it.

An inheritance tax is imposed on people who are bequeathed or get assets from the estate of someone who’s died, also referred to as a death tax.

wealth tax is levied on assets owned by a taxpayer and can apply to a range of types, including cash, bank deposits, shares, fixed assets, personal cars, real property, pension plans, money funds, owner-occupied housing, and trusts.

An Official Information Act request sent to Minister for Revenue David Parker in May asked if he’d considered a wealth or inheritance tax at any point, but he refused the request because that information doesn’t exist.

But recently, Opposition party leaders have speculated that a wealth, death, or inheritance tax could be on the horizon.

This is because in Budget 2021, $5 million was secured for the next two years for Inland Revenue and Treasury to research the level of tax high-wealth New Zealanders are paying.

ACT Party leader David Seymour said on Sunday the Government is “clearly gearing up for an inheritance tax” as a result of this funding and is “preparing another tax grab”