New Zealand Politicians Debate Tax and KiwiSaver Policies Ahead of Election

At BusinessNZ's election conference, politicians discussed various economic issues, including tax and KiwiSaver. National's Nicola Willis stated that her party would wait until the pre-election fiscal update to make a specific announcement on the research and development (R&D) tax incentive.

The R&D tax credit currently offers 15% for eligible businesses and individuals involved in R&D activities, with Willis expressing admiration for BusinessNZ's manifesto highlighting its success. While she agreed that increasing the tax credit made sense, she declined to specify by how much it should be raised.

Regarding bracket creep, a phenomenon where inflation pushes people into higher income tax brackets despite stagnant purchasing power, Willis emphasized National's intention to adjust tax settings without shifting current brackets. Instead, her party would consider adjusting rates and thresholds.

Labour's Barbara Edmonds defended the party's stance on making employer contributions to KiwiSaver compulsory while giving employees flexibility in contributing as they can. She argued that this approach prioritizes securing a home over saving for retirement, especially for those earning less than $40,000.