In the feature article we examine Inland Revenue’s draft report on tax options for an ageing population. Unless there are changes to taxation, an ageing population will squeeze the government’s accounts from two sides. On the revenue side, it will mean proportionally fewer working-age people are providing tax revenue to the government. On the expenditure side, it will mean a growing superannuation and healthcare bill. Inland Revenue’s briefing discusses the pros and cons of different tax options that can be used to help address this. We take a close look at three in particular: a comprehensive capital gains tax, an inheritance tax, and increases to the GST rate.
In our regular updates, we cover the quarterly data releases on wages, employment, social welfare, and consumer inflation. We also provide the regular monthly analysis of the performance and confidence indexes. For the most recent GDP figures and government accounts, see the June/July Bulletin.