John Key MP - National Party Finance Spokesman

04 February 2005

NZ at risk as Australia looks at cutting taxes

National Party Finance spokesman John Key says New Zealand risks losing more skilled labour and investment to Australia, given the news from across the Tasman that further tax breaks are planned for workers.

"If Helen Clark and Michael Cullen want to keep spending our taxes, they better start making sure those who are paying Labour's bills don't pack their bags and move to Australia."

Mr Key is referring to reports in Australia today of a significant tax reform programme before the next election, with 'across the board' cuts to income tax.

"Australia has a free trade deal with the US, the company tax rate is already below ours, and the standard of living is higher.

"The income gap has been growing, and reductions in Australia's personal tax rates will see the gap widen further.

"Here in New Zealand real wage growth has been stagnant, while the Labour Government collects $1 million a day more in taxes this year than it did last.

"Working New Zealanders deserve tax relief. The next National Government will provide it," says Mr Key.

ENDS

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