10 March 2026, 3 pm – The repeal of a provision that allowed Inland Revenue (IRD) to conduct its research into the tax paid by high net worth individuals in 2023 is being criticised as a ‘blow to tax transparency’ by Tax Justice Aotearoa and the Better Taxes for a Better Future Campaign.
The Taxation (Annual Rates for 2025-26, Compliance Simplification and Remedial Measures) Bill was reported back from the Finance and Expenditure Committee yesterday, with the Government majority on the committee endorsing the repeal of s.17GB, which enabled IR to conduct the 2023 research that found the wealthiest 311 families in the country had an effective tax rate of 9.4%, compared to middle income earners who had an effective tax rate of just over 20%.
“This research was ground-breaking”, says Glenn Barclay, spokesperson for both Tax Justice Aotearoa and the Better Taxes.”It allowed us to see for the first time the extent of taxation inequality in Aotearoa NZ, reflecting the deep income and wealth inequality we have in this country, and its repeal will be a blow to tax transparency.”
“Other countries, which already have capital gains and wealth taxes, have access to this information as a matter of course, but here we needed this provision to shine a light on the impact the lack of taxes on wealth have on government revenue and the imbalances in our current tax system.”
Tax Justice Aotearoa was one of many organisations that argued for the provision to be maintained and is deeply disappointed that the Government majority didn’t listen.
This was not the only blow to transparency in this Bill. The committee also confirmed the repeal of specific legislative provisions for trust disclosures. These sections make specific requirements for annual disclosures of information to IRD by all but certain exempted types of trusts.
“These general disclosure requirements on trusts are very important,” says Glenn Barclay. “Unlike the Register of Companies there is practically no public information available anywhere about who controls or might benefit from a trust, and given the significant amount of wealth held in trusts there is huge potential here for the wealthiest to minimise the tax they pay, while ordinary people pay tax on every dollar they earn.”
Given the importance of trusts in Aotearoa NZ and given the lack of a register of trusts and other disclosure requirements, the minimum disclosure requirements should remain in legislation.
Tax Justice Aotearoa and the Better Taxes Campaign calls on the Government to scrap these moves against tax transparency and ensuring the wealthiest pay their fair share.
